Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
What will be the effect of the transaction 'Issue of shares in consideration of the purchase of plant and machinery while making a cash flow statement?
Options:
Cash inflow
Cash outflow
No effect
None of these
Correct Answer:
No effect
Explanation:
No inflow and outflow of cash is taken place because shares are not issued in cash, these are issued in consideration of the purchase of machinery.