Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Which of the following transactions will not result in flow of cash whether its inflow or outflow?

Options:

Issue of equity shares of ₹1,00,000

Redemption of 10% debentures ₹5,50,000

Purchase of machinery of ₹100000

Cash deposited into bank ₹45,000

Correct Answer:

Cash deposited into bank ₹45,000

Explanation:

It is simply a movement between items of cash and cash equivalents. Form of cash is changed into bank balance, nothing else.