State whether the following transactions will result in inflow, outflow or no flow of cash while preparing cash flow statement: (i) Decrease in outstanding employees benefits by ₹3000 (ii) Increase in Current Investment by ₹ 6,000.
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Subject:
Accountancy -
Author:
moses74 -
Created:
1 year ago
Answers 2
Answer:
No flow
Explanation:
in second case we assume that current investment is Cash/cash equivalent.
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Author:
lexieyi5z
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Answer:
(i) Decrease in outstanding employees benefits by ₹3000 - Outflow
(ii) Increase in Current Investment by ₹ 6,000 - No flow
Explanation:
- In (i) there is a decrease in outstanding employee benefits by ₹3000 which means a decrease in current liability and the money is going out, so it is an outflow of cash
- In (ii) there is an increase in current investment by ₹6000 which means there is no flow of cash.
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redbulllafl
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