Question

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

1. A long-term loan from a bank.
2. Repayment of long-term loan.
3. Payment of interest on loan.
4. Conversion of debentures into preference shares.
5. Interest received on investments.
6. Interest due on debentures.
7. Receipt of accrued interest.
8. Purchase of securities of a company.
9. Buy-back of Equity Shares.
10. Purchase of Goodwill.
11. Goodwill written off.
12. Patents written off.

Answer 1

Inflow	Outflow	No Flow
A long-term loan from a bank.	Repayment of long-term loan.	Conversion of debentures into preference shares.
Interest received on investments.	Payment of interest on loan.	Interest due on debentures.
Receipt of accrued interest.	Purchase of securities of a company.	Goodwill written off.
	Buy-back of Equity Shares.	Patents written off.
	Purchase of Goodwill.