15 Views

Question : Increase in Bank Overdraft; 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


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Inflow of cash


Solution : Answer = inflow of cash

A bank overdraft is treated as short-term borrowing if the balance of the bank overdraft increases its inflow of financing activities. When a bank overdraft increases, it means the company has borrowed more funds from the bank, resulting in additional cash available for use. Therefore, it represents an inflow of cash.
Hence, the correct option is 1.

Related Questions

Amity University | M.Tech Adm...
Apply
Ranked amongst top 3% universities globally (QS Rankings).
Amity University Noida MBA Ad...
Apply
Amongst top 3% universities globally (QS Rankings)
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024) | 30+ Specializations | AI Powered Learning & State-of-the-Art Facilities
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
Shoolini University Admission...
Apply
NAAC A+ Grade | Ranked No.1 Private University in India (QS World University Rankings 2025) | 5000+ Placements
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books