Question：In a statement of cash flows which of the following would not be shown as a cash flow within the 'financing' section?
 
　　A. Repurchase of a long-term loan.
 
　　B. Issue of ordinary shares.
 
　　C. Dividends paid.
 
　　D. Repayment of an overdraft.
 
　　The correct answer is: Repayment of an overdraft.
 
　　An overdraft is a borrowing facility repayable on demand. The repayment of an overdraft will increase the amount of cash which is the bottom line of the statement of cash flows.
 
　　Repurchase of a long-term loan means the company is paying the loan back. Dividends paid are a financing outflow.
 
　　Issue of ordinary shares would be a cash inflow under ‘financing'.

 
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