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mediumMCQCUET UG 2024 Accountancy Question Paper (17-May-2024) (Shift 3)2026Accountancy
1 mark

Calculate the resulting cash flow and state the nature of cash flow from the following information:Acquired machinery for by issuing a cheque.

  1. A
    Investing activity and outflow
  2. B
    Investing activity and inflow
  3. C
    Investing activity and no flow
  4. D
    Operating activity and outflow

Solution & Step-by-step Explanation

Buying machinery by issuing a cheque results in a direct reduction in the bank balance, which constitutes an immediate cash outflow. Since machinery is a long-term productive asset, this transaction is classified as an Investing activity with an outflow of .

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Calculate the resulting cash flow and state the nature of cash flow from the following information:Acquired machinery for by issuing a cheque.
A
Investing activity and outflow
B
Investing activity and inflow
C
Investing activity and no flow
D
Operating activity and outflow

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