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LoginC. Purchase of building
Explanation:
In a cash flow statement (as per accounting standards like AS-3, not AS-7), activities are classified into:
Operating activities
Investing activities
Financing activities
Financing activities include:
Issue of shares ✅
Buy-back of shares ✅
Dividend paid ✅
These relate to changes in capital structure.
Investing activities include:
Purchase or sale of fixed assets (like buildings) ❌
So, purchase of building falls under investing activities, not financing.
Conclusion:
👉 Option C is correct
C. Purchase of building
Explanation:
In a cash flow statement (as per accounting standards like AS-3, not AS-7), activities are classified into:
Operating activities
Investing activities
Financing activities
Financing activities include:
Issue of shares ✅
Buy-back of shares ✅
Dividend paid ✅
These relate to changes in capital structure.
Investing activities include:
Purchase or sale of fixed assets (like buildings) ❌
So, purchase of building falls under investing activities, not financing.
Conclusion:
👉 Option C is correct