Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
Cash flow in the cash flow statement of a company arises when the net effect of a transaction _____ the amount of cash or cash equivalents.
Options:
Increase
Decrease
Either option or 2
Neither increase nor decrease
Correct Answer:
Either option or 2
Explanation:
Cash flow refers to the net balance of cash moving into and out of a business at a specific point in time. Cash is constantly moving into and out of a business.