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Home Questions BEJAP8H363
Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Match the following regarding the cash flow statement.

LIST 1 LIST 2
A) Purchase of furniture by issue of shares I) Inflow of cash
B) Debentures are issued for cash II) Outflow of cash
C) Purchase of goods for cash III) No flow of cash
Options:

A-III, B-I, C-II

A-I, B-II, C-III

A-I, B-III, C-II

A-III, B-II, C-I

Correct Answer:

A-III, B-I, C-II

Explanation:

A) Purchase of furniture by issue of shares- Furniture is purchased but shares are issued means there is no use of cash.

B) Debentures are issued for cash- Debentures are issued means cash came to the company which is an inflow of cash.

C) Purchase of goods for cash- Goods are purchased by paying cash means cash outflow takes place in the company.

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