How is premium on redemption of prefrence share , dividend received on prefrence share(10 per. Prefrence share treated in cash flow statement
Dear Student,
Premium on redemption of preference share is a capital expense and would be deducted from cash flow under Financing Activities;
And, dividend received on preference shares is covered under investing Activity as it is a return on amount invested in Preference shares;
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Regards,
Premium on redemption of preference share is a capital expense and would be deducted from cash flow under Financing Activities;
And, dividend received on preference shares is covered under investing Activity as it is a return on amount invested in Preference shares;
Keep posting !!!
Regards,