Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
Which of the following is source of cash?
Options:
Cash deposited into Bank
Cash withdrawn from Bank
Sale of Goods costing Rs10,000 for Rs8,000
All of the above
Correct Answer:
Sale of Goods costing Rs10,000 for Rs8,000
Explanation:
Cash deposits/withdrawals are neither inflow nor outflow of cash. The sale of Goods costing Rs10,000 for Rs8,000 makes the inflow of cash. Even the goods are sold at a loss but cash came to the business.