Question:
Which of the following transaction will result in flow of cash?
Which of the following transaction will result in flow of cash?
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Cash flow involves only those transactions that result in the inflow or outflow of actual cash, excluding non-cash transactions.
Updated On: Jan 29, 2025
- Cash withdrawn from bank Rs.71,000
- Issue of 9\% debentures of Rs.1,00,000 to the vendors of Machinery
- Received from debtors Rs.74,000
- Redeemed 10\% debentures by converting into equity shares
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The Correct Option is C
Solution and Explanation
Receiving money from debtors results in an inflow of cash. The other options either involve non-cash transactions or a transfer within accounts.
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