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CUET Preparation Today
Increase in Bank overdraft of ₹50,000 will be shown as : |
Inflow of finance activities Outflow of finance activities Inflow of investing activities Added as increase in current liabilities in operating activities |
Inflow of finance activities |
The correct answer is Option (1) - Inflow of finance activities A bank overdraft is a financing activity in the cash flow statement. An increase in this will make inflow of cash to the company. So, increase in bank overdraft by ₹50000 make cash inflow of ₹50000 in financing activity. |
