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Home Questions BEJAP8H363
Target Exam

CUET

Subject

-- Accountancy Part B

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
D) Cash withdraw from bank IV) Cash equivalent

 

Options:

A-III, B-I, C-II, D-IV

A-I, B-II, C-III, D-IV

A-I, B-III, C-II, D-IV

A-III, B-II, C-I, D-IV

Correct Answer:

A-III, B-I, C-II, D-IV

Explanation:

The correct answer is option 1- A-III, B-I, C-II, D-IV.

LIST 1 LIST 2
A) Purchase of furniture by issue of shares III) No flow of cash
B) Debentures are issued for cash I) Inflow of cash
C) Purchase of goods for cash II) Outflow of cash
D) Cash withdraw from bank IV) Cash equivalent

 

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.

D) Cash withdraw from bank- Cash equivalent. Bank balance is converted into cash in hand.

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