Question : Which of the following transactions will result into inflow of cash?
Option 1: issued Rs.20,000, 9% Debentures to the vendor of machinery
Option 2: Deposited cheques of Rs.10,000 into bank
Option 3: Cash withdrawn from bank Rs.20,000.
Option 4: Received Rs.19,000 from debtors
Answer (1)
17th Jan, 2024
Correct Answer: Received Rs.19,000 from debtors
Solution : The transaction that caused a cash flow was the receipt of Rs.19,000 in cash from the debtors.
Cash management activities such as depositing a check into the bank and withdrawing money from the bank do not include cash flow. A debenture issue is one that does not include cash flow and is issued for consideration other than cash.
Hence the correct answer is option 4.
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