Target Exam

CUET

Subject

Accountancy Part B

Chapter

Cash Flow Statement

Question:

Calculate cash flow from investing activities from the following information.

1. During the period, the enterprise acquired Fixed Assets for Rs. 350. The payment was made in cash.

2. Plant (part of fixed asset) with an original cost of Rs. 80 having accumulated depreciation of Rs. 60 was sold for Rs. 20.

3. Interest Income received Rs 300.

4. Dividend Income received Rs 200.

5. Interest on long term bank loan paid Rs 1000.

Options:

Cash used Rs 350

Cash used Rs 330

Cash inflow of Rs 170

Cash inflow of Rs 150

Correct Answer:

Cash inflow of Rs 170

Explanation:

The correct answer is Option (3) → 

Cash inflow of Rs 170