Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
What will be the effect of the transaction ' Old furniture written off whose book value is ₹50000' on the cash and cash equivalents while making a cash flow statement by the company?
Options:
Cash inflow
Cash outflow
No effect
Both option 1 and 2
Correct Answer:
No effect
Explanation:
Written-off assets do not make any cash inflow or cash outflow. So, there will be no effect.