Question:
Which of the following transactions will not result in the inflow of cash ?
Which of the following transactions will not result in the inflow of cash ?
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Cash inflow means money received by the business, whereas outflow is money spent. Purchases are always outflows.
Updated On: Jul 8, 2025
- Cash deposited in the bank ₹ 80,000
- Payment of salaries ₹ 50,000
- Issue of 9% debentures ₹ 10,00,000
- Purchase of machinery ₹ 2,00,000
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The Correct Option is D
Solution and Explanation
The purchase of machinery is a cash outflow, not an inflow. Hence, it does not result in cash coming into the business. Options A and C involve cash inflows, and B is a cash outflow as salary is paid, but D is specifically an investment outflow.
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