Question : The issue of 9% Debentures to a vendor for the purchase of machinery of Rs. 50,000 will result in inflow outflow or no flow of cash while preparing Cash Flow Statement __________.
Option 1: Inflow
Option 2: Outflow
Option 3: No changes
Option 4: Cash and cash equivalents
Answer (1)
25th Jan, 2024
Correct Answer: No changes
Solution : Answer = No changes
The issue of 9% Debentures to a vendor for the purchase of machinery of Rs. 50,000 will result in no flow of cash while preparing the Cash Flow Statement. This transaction involves the issuance of debentures in exchange for machinery, which does not involve the movement of cash.
Hence, the correct option is 3.
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