State whether the following would result in inflow, outflow, or no flow of cash: Bill receivable endorsed to creditors. Old vehicle written off.

Transaction Cash flowtype 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.

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CISCEISC (Commerce) Class 12

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State whether the following would result in inflow, outflow, or no flow of cash: (i) Bill receivable endorsed to creditors. (ii) Old vehicle written off. - Accounts

Question

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

Bill receivable endorsed to creditors.
Old vehicle written off.

Short Answer

Solution

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.