Question : Cash received from debtors Rs. 10,000; would result in inflow/outflow/no flow of Cash and Cash Equivalents:
Option 1: Inflow
Option 2: Outflow
Option 3: No flow
Option 4: None of the above
Correct Answer: Inflow
Solution : Answer = Inflow
Cash received from debtors of Rs 10,000 results in an inflow of cash. This is because cash is received by the company, increasing its available funds. In the cash flow statement, such inflows are categorized under operating activities as they relate to the core business operations. Hence, the correct option is 1.
Question : Cash received from trade receivable Rs. 20,000; would result in inflow/outflow/no flow of Cash and Cash Equivalents:
Option 2: outflow
Question : Declaration of final dividend Rs. 1,25,000; would result in inflow/outflow/no flow of Cash and Cash Equivalents:
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