Question

An example of cash flow from operating activity is
(a) purchase of own debenture
(b) sale of fixed assets
(c) interest paid on term-deposits by a bank
(d) Issue of equity share capital​

Answer 1

Answer:

option C is operating activitiy

Explanation:

A is financial activity

B is investing activity

D is also a financial activity

Answer 2

Answer:

Option c,  interest paid on term deposits by a bank can be claimed as an operating activity.

Explanation:

Operations are the day-to-day operations of a company that is involved in the production and marketing of its product, which generates revenue, as well as general management and maintenance functions. The key operations of the company include manufacturing, marketing, marketing, and marketing activities.

The other options are classified as financing activities.

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