Question

Which of the following transactions will not result in a flow of cash?

Options

• Cash withdrawn from the bank ₹ 7,000

• Issue of shares ₹ 20,00,000

• Purchase of investments ₹ 60,000

• Payment of wages ₹ 11,000

Answer 1

Cash withdrawn from the bank ₹ 7,000

Explanation:

This type of transaction is an internal movement of funds within the business from a bank to cash. It does not generate or use cash externally, resulting in no net cash flow on the cash flow statement.