Question : Non-cash transactions are ____________while preparing Cash Flow Statement.
Option 1: not considered
Option 2: considered
Option 3: both 1 and 2
Option 4: None of the above
Answer (1)
10th Jan, 2024
Correct Answer: not considered
Solution :
Answer =
Not considered
Cash Flow Statement shows only inflows and outflows of cash. It does not show non-cash transactions like the purchase of a building by issue of shares or debentures to the vendors or issue of bonuses.
Hence, the correct option is 1.
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