13 Views

Question : Depreciation charged by a Company will result in inflow, outflow or no flow of Cash.

Option 1: Inflow of cash

Option 2: Outflow of cash

Option 3: No flow of cash

Option 4: Cash and cash equivalents


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: No flow of cash


Solution : Answer = No flow of cash

When depreciation is charged on fixed assets by the company will be no flow of cash because depreciation is a Non-cash item. Depreciation charged by a company does not involve any actual cash movement; it represents the allocation of the cost of an asset over its useful life for accounting purposes.
Hence, the correct option is 1.

Related Questions

Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
UPES | BBA Admissions 2025
Apply
#41 in NIRF, NAAC ‘A’ Grade | 100% Placement, up to 30% meritorious scholarships | Last Date to Apply: 28th Feb
MAHE Manipal M.Tech 2025
Apply
NAAC A++ Accredited | Accorded institution of Eminence by Govt. of India | NIRF Rank #4
Sanskriti University LLM Admi...
Apply
Best innovation and research-driven university of Uttar Pradesh
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books