The redemption of redeemable preference shares out of retained profits:
A)involves cash outflow for an investing activity
B)does not involve a cash flow, so does not affect the amounts in the cash flow statement
C)involves cash inflow for an investing activity
D)involves cash inflow for an a financing activity

Question

Quizplus · Accepted Answer

Redemption of redeemable preference shares out of retained profits does not involve a cash outflow or cash inflow, therefore it does not affect the amounts in the cash flow statement.

The Redemption of Redeemable Preference Shares Out of Retained Profits