Get Started
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions 5CTWE7M2D5
Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

An increase in Bank overdraft of ₹50,000 will be shown as:

Options:

Inflow of finance activities

Outflow of finance activities

Inflow of investing activities

Added as increase in current liabilities in operating activities

Correct Answer:

Inflow of finance activities

Explanation:

The correct answer is option 1- 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.

CUET Questions