Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
Cash deposited into the bank results............ on the cash and cash equivalents while preparing cash flow statement.
Options:
Cash inflow
Cash outflow
No effect
None of these
Correct Answer:
No effect
Explanation:
Both cash and bank balance are cash equivalents. Just the form of cash change into a bank balance which causes no effect on the cash equivalents of the company.