Which of the following does not result in outflow of cash?
(A) Depreciation
(B) Loss on sale of fixed assets
(C) Purchase of fixed assets
(D) Goodwill written off
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is option 2- (A), (B) and (D) only.
Except Purchase of fixed assets, all other items are non cash item and does not lead to outflow of cash.
Non-cash items such as depreciation, goodwill written-off, provisions, deferred taxes, etc.