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    Question

    Which among the following will not lead to generation of cash flows in financing activities?

    A Raising debt through debentures Correct Answer Incorrect Answer
    B Taking a long-term bank loan Correct Answer Incorrect Answer
    C Issuing right shares Correct Answer Incorrect Answer
    D Issuing Zero Coupon Bonds Correct Answer Incorrect Answer
    E Issuing Bonus Shares Correct Answer Incorrect Answer

    Solution

    In case of bonus issue, there are no cash inflows. The profits are transferred to Capital A/c. 

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