Question

Interest of ₹ 3,000 received in cash on loans and advances will result in:

Options

• Cash inflow from operating activities.

• Cash inflow from investing activities.

• Cash inflow from financing activities.

• No change in cash or cash equivalents.

Answer 1

Cash inflow from investing activities.

Explanation:

Interest received on loans and advances is an investing activity because it comes from lending, which is an investment of funds.