Practicing Success
An increase in Bank overdraft of ₹50,000 will be shown as: |
Inflow of finance activities Outflow of finance activities Inflow of investing activities Added as increase in current liabilities in operating activities |
Inflow of finance activities |
A bank overdraft is a financing activity in the cash flow statement. An increase in this will make inflow of cash to the company. Thus it is an inflow of financing activity. |