Which of the following is an example of a financial cash flow? interest payment by a subsidiary to a parent compan...
Which of the following is an example of a financial cash flow?
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interest payment by a subsidiary to a parent company |
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lease payment for facilities or equipment used |
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intra-firm payable for goods used in production |
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account receivable from an unrelated party for goods or services sold |
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None; these are all operating cash flows. |
Homework Answers
Answer
Correct option: Option (a) : interest payment by a subsidiary to a parent company
Explanation : Financial cashflows refers to all the inflows and outflows that pertains to the financial activities like borrowing of capital ,making interest payments on borrowed funds, redemption of debt, etc.
All the other options in the question are examples of operating activities.
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