Question : Examples of Non-cash Transactions are-----
Option 1: Depreciation and
Option 2: Amortization Expenses, Issue of Bonus Shares,
Option 3: Issue of Equity Shares or Debentures for consideration other than cash
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above All of the above transactions are non-cash Transactions. When depreciation is charged, Any intangible assets written off and assets purchased by issuing shares will neither inflow nor outflow of cash. Depreciation and amortization expenses represent the allocation of the cost of assets over time, and the issuance of bonus shares or equity shares/debentures for consideration other than cash, as they involve the exchange of securities rather than cash. Hence, the correct option is 4.
Question : Acquisition of fixed asset by issue of debentures or shares is an example of --------------------
Option 1: Non-cash transactions.
Option 2: Cash transactions.
Option 3: Both 1 and 2
Option 4: None of the above
Question : Debentures issued for consideration other than cash are not shown in the Cash Flow Statement because__________ is not received against the issue.
Option 1: Debentures
Option 2: Debentures suspense
Option 3: Cash flow from financing activities
Option 4: Cash
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