Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

Calculate the net amount of cash flow if a fixed asset costing ₹38,000 (Book value ₹30,000) is sold at a loss of ₹5,000. Cash flow from investing activities would be.........

Options:

₹33,000

₹25,000

₹5,000

₹30,000

Correct Answer:

₹25,000

Explanation:

The correct answer is option 2- ₹25,000.

Cash Flow from investing activities = Book value - Loss
                                                       = 30,000-5,000
                                                       = 25,000