Question

State whether the following would result in inflow, outflow, or no flow of cash:

1. Bill receivable endorsed to creditors.
2. Old vehicle written off.

Answer 1

Transaction	Cash flow type	Reason
(i) Bill receivable endorsed to creditors	No flow of cash	It is a non-cash transaction where a receivable is transferred to settle a liability.
(ii) Old vehicle written off	No flow of cash	It is an accounting write-off and does not involve any actual movement of cash.