State, with reason, which of the following would result in inflow, outflow, or no flow of cash: Cash deposited in the bank. Proposed dividend.

Transaction Cash FlowType Reason (i) Cash deposited in the bank No flow of cash Cash and bank are parts of the movement within cash and cash equivalents. (ii) Proposed dividend No flow of cash Cash is not affected because the proposed dividend is a contingent liability and will be paid next year.

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CISCEISC (Commerce) Class 12

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State, with reason, which of the following would result in inflow, outflow, or no flow of cash: (i) Cash deposited in the bank. (ii) Proposed dividend. - Accounts

Question

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

Cash deposited in the bank.
Proposed dividend.

Short Answer

Solution

Transaction	Cash Flow Type	Reason
(i) Cash deposited in the bank	No flow of cash	Cash and bank are parts of the movement within cash and cash equivalents.
(ii) Proposed dividend	No flow of cash	Cash is not affected because the proposed dividend is a contingent liability and will be paid next year.