Question : Debentures issued for consideration other than cash are not shown in the Cash Flow Statement because__________ is not received against the issue.
Option 1: Debentures
Option 2: Debentures suspense
Option 3: Cash flow from financing activities
Option 4: Cash
Answer (1)
25th Jan, 2024
Correct Answer: Cash
Solution : Answer = Cash
Debentures issued for consideration other than cash are not shown in the Cash Flow statement because
cash
is not received against the issue. As per the principle of cash flow reporting, only cash transactions are included, and non-cash transactions such as issuance for consideration other than cash are excluded.
Hence, the correct option is 4.
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