Question : Cash flow arises when the net effect of a transaction_________the amount of cash and cash equivalents -
Option 1: Either increase or decrease
Option 2: Only Increase
Option 3: Only decrease
Option 4: None of the above
Correct Answer: Either increase or decrease
Solution : Cash flow arises when the net effect of a transaction either increase or decrease the amount of cash and cash equivalents.
Hence the Correct answer is option 1.