Question : Declaration of final dividend Rs. 1,25,000; 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: Outflow
Solution : Answer = Outflow
The declaration of a final dividend of Rs 1,25,000 would result in an outflow of cash and cash equivalents. This is because dividends represent a distribution of profits to shareholders, resulting in a cash outflow from the company's coffers to its shareholders. Declaration of the Final dividend means shareholders have approved the dividend, declared dividend is paid within 30 days of declaration. Hence, the correct option is 2.
Question : Declaration of Interim Dividend would result in inflow/outflow/no flow of Cash and Cash Equivalents ____________.
Question : Cash received from debtors Rs. 10,000; would result in inflow/outflow/no flow of Cash and Cash Equivalents:
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