Question : Cash Flow Statement is a statement that shows the cash flows, i.e., inflow and outflow of___________during the period.
Option 1: Assets and liabilities
Option 2: Income and expenditure
Option 3: Cash and cash equivalents
Option 4: Profit and loss
Correct Answer: Cash and cash equivalents
Solution : Answer = cash and cash equivalents
Cash flow statement that shows the cash flow, inflow and outflow of cash and cash equivalents during the accounting period from operating, investing and financing activities. It provides insights into a company's liquidity by detailing how cash is generated and used within a specific timeframe. Hence, the correct option is 3.
Question : Decrease in Cash Credit. would result in inflow/outflow/no flow of Cash and Cash Equivalents:
Option 1: Inflow of cash
Option 2: Outflow of cash
Option 3: Neither inflow Nor outflow
Option 4: Cash and cash equivalent
Question : Increase in Bank Overdraft; would result in inflow/outflow/no flow of Cash and Cash Equivalents:
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