Question 02 Chapter 5 of +2-B - USHA Publication 12 Class

Question 02 Chapter 5 of +2-B

Identification Of Activities

2. (Classification of Activities) Classify the following activities as :
(a) Operating activities (b) Investing activities (c) Financing activities
(i) Cash Sales (ii) Cash purchases (iii) Dividend paid (iv) Repayment of borrowing (v) Issue of shares for cash (vi) Redemption of Debentures (vii) Dividend received (viii) Rent paid (ix) trading commission received, (x) Preference shares redeemed.

The solution of Question 02 Chapter 5 of +2-B: -

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Items	Heads of Cash Flow Statement
(i) Cash Sales	Operating Activities
(ii) Cash purchases	Operating Activities
(iii) Dividend paid	Financing Activities
(iv) Repayment of borrowing	Financing Activities
(v) Issue of shares for cash	Financing Activities
(vi) Redemption of Debentures	Financing Activities
(vii) Dividend received	Investing Activities
(viii) Rent paid	Operating Activities
(ix) trading commission received	Operating Activities
(x) Preference shares redeemed	Financing Activities