Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
Which of the following is not the source of Cash while preparing a cash flow statement?
Options:
Funds from Operations
Issue of Debentures
Purchase of Fixed Assets
Sale of Fixed Assets
Correct Answer:
Purchase of Fixed Assets
Explanation:
Besides purchase of fixed asset, all are source of funds because they increase cash flow into the firm. The purchase of fixed asset makes cash outflow.