Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Which of the following transactions will result in 'Inflow of Cash' while making the cash flow statement?

Options:

Deposited ₹10,000 into a bank

Withdrew cash from bank ₹5000

Sale of the machinery of the book value of ₹40000 at a loss of ₹6000

Converted 300,000 debentures into equity shares

Correct Answer:

Sale of the machinery of the book value of ₹40000 at a loss of ₹6000

Explanation:

Cash will inflow into the company of ₹34000(40000-6000).
Deposited ₹10,000 into a bank, Withdrew cash from bank ₹5000, Converted 300,000 debentures into equity shares- All these transactions just transaction of conversion from one form to another.