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Question : Cash received from debtors Rs. 10,000; would result in inflow/outflow/no flow of Cash and Cash Equivalents:

Option 1: Inflow

Option 2: Outflow

Option 3: No flow

Option 4: None of the above


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Inflow


Solution : Answer = Inflow

Cash received from debtors of Rs 10,000 results in an inflow of cash. This is because cash is received by the company, increasing its available funds. In the cash flow statement, such inflows are categorized under operating activities as they relate to the core business operations.
Hence, the correct option is 1.

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