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Home Questions 65W87BQM5P
Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

Identify the cash transaction from the following:

Options:

Purchase of machinery by issue of preference shares

Redemption of Debentures by issuing equity shares

Issue of Debentures as collateral security

Purchase of land by taking loan

Correct Answer:

Purchase of land by taking loan

Explanation:

The correct answer is option 4- Purchase of land by taking loan.

Purchase of land by taking loan- Loan is taken from the financial institution due to which bank balance arise to the business from which it purchases land. So it a cash transaction.

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