Which one of the following transactions does NOT involve a cash flow? A prepayment of insurance...

Which one of the following transactions does NOT involve a cash flow?

A prepayment of insurance

B issue of shares

C issue of bonus shares

D revenue received in advance

Expert Solution

Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. This means that the issue of bonus shares is a non cashflow transaction.

So correct answer is C) issue of bonus shares

ekkarill92 answered 2 years ago

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