Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
A company acquired machinery for ₹250000 paying a 20% downpayment and executing a bond for the balance payable. How much cash is used in investing activity of the company?
Options:
₹200000
₹50000
₹150000
₹40000
Correct Answer:
₹50000
Explanation:
Cash used = 250000 X 20/100 = ₹50000