How will you deal increase in the balance of 'Securities Premium Reserve' while preparing a Cash Flow Statement?
A)cash flow from operating activities
B)cash flow from investing activities
C)cash flow from financing activities
D)cash equivalent

Question

Quizplus · Accepted Answer

The increase in the balance of 'Securities Premium Reserve' is related to transactions involving equity financing, such as the issuance of shares at a premium. Therefore, it is classified under cash flow from financing activities in the Cash Flow Statement.

How Will You Deal Increase in the Balance of 'Securities