Financial Statements

Cash Flow

Easy

If debentures are converted into equity shares, it is a/an : _____

Inflow of cash

No flow of cash

Outflow of cash

Cash and Cash equivalents

✅ Correct Option: 2

Conversion of debentures into equity shares is a non-cash transaction. No actual cash flows in or out of the business; it is merely an exchange of one liability/capital instrument for another. Hence it results in no flow of cash.

2022: 15 July Shift 2

Amount of Security Premium Reserve will be shown in

2022: 20 Aug Shift 2

Net profit before tax will be Rs. ________

2024

While preparing Cash Flow Statement, purchase of goodwill is treated as:

2025: 15 May Shift 1

Dividend paid by a company to its shareholder is classified as which type of activity under cash flow statement?

2022: 8 Aug Shift 2

Which one of the following statement is false?

2023: 29 May Shift 2

Capital gain tax paid on sale of fixed assets should be classified as _______

If debentures are converted into equity shares, it is a/an : _____

Solution

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