ACCA FA · Chapter 12 · Question 5 of 10
Under IAS 7 Statement of Cash Flows, how are proceeds from an issue of ordinary shares classified?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Financing activities
Explanation
Financing activities are those that change the size and composition of contributed equity and borrowings. Cash received from issuing shares is therefore a financing inflow. Investing activities relate to the acquisition and disposal of long-term assets.
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