Financial Statements

Cash Flow

Medium

Which one of the following is not a 'Cash Outflow'?

Increase in stock

Increase in prepaid expenses

Increase in outstanding expenses

Increase in bills receivable

✅ Correct Option: 3

An increase in a current asset (stock, prepaid expenses, bills receivable) means cash has been applied, so it is a cash outflow. Outstanding expenses are a current liability; an increase means expense has been recorded without actually paying cash, representing a source of cash, not an outflow.

2026: 11 May Shift 1

LK Ltd acquired shares in Informa Tech. and paid Rs. 2,50,000 as purchase consideration and received a dividend of Rs. 50,000 after the acquisition. Calculate the resulting cash flow of LK Ltd.

2022: 30 Aug Shift 2

Match List I with List II

	LIST I		LIST II
A.	Cash Equivalents	I.	Interim Dividend paid
B.	Financing Activities	II.	Selling & Distribution expenses paid
C.	Operating Activities	III.	Marketable securities
D.	Investing Activities	IV.	Dividend received on Shares held as investment

Choose the correct answer from the options given below:

2024

Calculate the resulting cash flow and state the nature of cash flow from the following information: Acquired machinery for ₹ 3,50,000 by issuing cheque.

2025: 14 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Operating activity	(I) Bank
(B) Investing activity	(II) Redemption of preference shares
(C) Financing activity	(III) Purchase of machinery
(D) Cash equivalents	(IV) Cash receipt from trade receivables.

Choose the correct answer from the options given below:

2024

Arrange the following in proper sequence while preparing Cash Flow Statement:

2022: 15 July Shift 2

Amount of Security Premium Reserve will be shown in

Which one of the following is not a 'Cash Outflow'?

Solution

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