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Sale of patents of ₹ 50,00,000 will result in? - Accounts

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Question

Sale of patents of ₹ 50,00,000 will result in?

Options

  • Cash inflow of ₹ 50,00,000 from financing activities

  • Cash outflow of ₹ 50,00,000 from financing activities

  • Cash outflow of ₹ 50,00,000 from investing activities

  • Cash inflow of ₹ 50,00,000 from investing activities

MCQ
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Solution

Cash inflow of ₹ 50,00,000 from investing activities

Explanation:

The sale of patents involves disposing of an intangible asset, which falls under investing activities. The ₹ 50,00,000 received represents a cash inflow from investing.

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Chapter 13: Cash Flow Statement - OBJECTIVE TYPE QUESTIONS [Page 13.162]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 13 Cash Flow Statement
OBJECTIVE TYPE QUESTIONS | Q (A) 58. | Page 13.162
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