Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

Which of the following is not a cash inflow while preparing a cash flow statement?

Options:

Decrease in Debtors

Issue of Debentures

Decrease in Creditors

None of these

Correct Answer:

Decrease in Creditors

Explanation:

A decrease in creditors means creditors are paid which means there is cash outflow. Issue of debentures means cash inflow from financing activities. A decrease in debtors means some debtors give an amount to the company which means cash inflow.