Question : Adjustment of increase in the balance of 'Bank Overdraft' while preparing a Cash Flow Statement is __________________.
Option 1: inflow of operating activities
Option 2: inflow of investing activities
Option 3: inflow of financing activities
Option 4: extra-ordinary items
Correct Answer: inflow of financing activities
Solution : An increase in bank overdraft will be treated as an inflow of financing activities. Hence, the correct option is 3.
Question : Adjustment of increase in the balance of 'Securities Premium' while preparing a Cash Flow Statement is
Question : Under which type of activity will you classify 'Proceeds from Sale of Patents' while preparing Cash Flow Statement?
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