Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

From the following information of I Ltd., calculate Net Increase/Decrease in cash and cash equivalents during the year 2021-22.
i) Cash flow from Operating Activities: ₹ 2,35,000
ii) Cash used in investing Activities: ₹ 4,35,000
iii) Cash flow from financing activities: ₹ 2,35,000

Options:

₹35,000 Decrease

₹435,000 Decrease

₹470,000 increase

₹35,000 Increase

Correct Answer:

₹35,000 Increase

Explanation:

Cash flow from Operating Activities:           ₹ 2,35,000
Less : Cash used in investing Activities:     ₹ 4,35,000
Add: Cash flow from financing activities:    ₹ 2,35,000
Net Increase/Decrease in cash and cash equivalents = 35000 increase