Discussion
In relation to cash flow statement, which of the following is not regarded as a financing activity
Answer: D
Cash payments to and on behalf of employees are not a financing activity. In a cash flow statement they are part of operating activities, because they arise from running the business. Financing activities are those that change the size and make-up of owners' capital and borrowings: redemption of debentures, cash proceeds from issuing debentures and cash proceeds from issuing shares all fall under them. So the fourth option is the one that is not financing.
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