Question : Depreciation charged by a Company will result in inflow, outflow or no flow of Cash.
Option 1: Inflow of cash
Option 2: Outflow of cash
Option 3: No flow of cash
Option 4: Cash and cash equivalents
Correct Answer: No flow of cash
Solution : Answer = No flow of cash
When depreciation is charged on fixed assets by the company will be no flow of cash because depreciation is a Non-cash item. Depreciation charged by a company does not involve any actual cash movement; it represents the allocation of the cost of an asset over its useful life for accounting purposes. Hence, the correct option is 1.
Question : Conversion of debentures into equity shares by a financing company will result in inflow, outflow or no flow of cash.
Question : Decrease in Cash Credit. would result in inflow/outflow/no flow of Cash and Cash Equivalents:
Option 3: Neither inflow Nor outflow
Option 4: Cash and cash equivalent
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile