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Question : Adjustment of increase in the balance of 'Bank Overdraft' while preparing a Cash Flow Statement is __________________.

Option 1: inflow of operating activities

Option 2: inflow of investing activities

Option 3: inflow of financing activities

Option 4: extra-ordinary items


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 8th Jan, 2024

Correct Answer: inflow of financing activities


Solution : An increase in bank overdraft will be treated as an inflow of financing activities.
Hence, the correct option is 3.

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