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mediumMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

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

  1. A
    Increase in stock
  2. B
    Increase in prepaid expenses
  3. C
    Increase in outstanding expenses
  4. D
    Increase in bills receivable

Solution & Step-by-step Explanation

Increase in current liabilities (like outstanding expenses) acts as a source of cash or is added back in calculating operating cash flows. It is not an outflow.

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Which one of the following is not a 'Cash Outflow'?
A
Increase in stock
B
Increase in prepaid expenses
C
Increase in outstanding expenses
D
Increase in bills receivable

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Financial StatementsCash Flow

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