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Question
Which of the following transactions does not result in Inflow or outflow of cash and cash equivalents?
Options
Collection of cash from trade receivables
Payment to trade payables
Cash received on maturity of marketable securities
Payment to employees
MCQ
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Solution
Cash received on maturity of marketable securities
Explanation:
This transaction involves converting a cash equivalent into actual cash. Since both are part of “Cash and Cash Equivalents,” there is no net inflow or outflow. It’s a reclassification, not a cash flow.
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