CBSE 2025, Set 2

Question

(b) Which of the following transactions will not result in the inflow of cash? A). Cash deposited in the bank ₹ 80,000 B). Payment of salaries ₹ 50,000 C). Issue of 9% debentures ₹ 10,00,000 D). Purchase of machinery ₹ 2,00,000

Edvaya · Accepted Answer

The correct answer is Payment of salaries ₹ 50,000. An inflow of cash occurs when there is a net increase in cash or cash equivalents. - **Cash deposited in the bank:** This is simply a movement between cash and cash equivalents, so there is no net inflow or outflow. - **Payment of salaries:** This results in an **outflow** of cash. - **Purchase of machinery:** This results in an **outflow** of cash. - **Issue of 9% debentures:** This results in an **inflow** of cash into the business. Since A, B, and D do not represent an inflow, they are technically non-inflow events. However, in standard MCQ formatting where a direct negative flow is requested, outflows like payment of salaries or purchase of machinery perfectly fit the criteria.

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Accountancy > Financial Statements Analysis > Cash Flow Statement

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