Practicing Success
Calculate the resulting cash flow and state the nature of cash flow from the following information: Acquired machinery for ₹3,50,000 by issuing cheque. |
Investing activity and outflow ₹3,50,000 Investing activity and inflow ₹3,50,000 Investing activity and no flow Operating activity and outflow ₹3,50,000 |
Investing activity and outflow ₹3,50,000 |
The correct answer is option 1- Investing activity and outflow ₹3,50,000. The acquisition of machinery for ₹3,50,000 by issuing a cheque results in the Outflow of cash of ₹3,50,000. |