Effect of Transactions on Cash Flow
(Transactions affecting/not affecting Cash and cash Equivalents - Illustration 2)
State which of the following would result in inflow/outflow of cash and cash equivalents:
| Sr. No. | Activity | Effect on cash and cash equivalents |
| 1. | Sale of fixed assets | Cash inflow |
| 2. | Purchase of stock in trade | Cash outflow |
| 3. | Purchase of fixed assets by issue of shares | No flow |
| 4. | Cash received from debtors. | Cash inflow |
| 5. | Cash deposited into bank | No flow |
| 6. | Cash withdrawn from bank | No flow |
| 7. | Issue of fully paid bonus shares | No flow |
| 8. | Sale of marketable securities (at par). | No flow |
| 9. | Declaration of final dividend. | No flow |
| 10. | Payment of interim dividend. (If declared, paid within 7 days) | Cash outflow |
| 11. | Writing off bad debts against PDD | No flow. |
Depreciation in Cash Flow Statement
Types of Activities in Cash Flow Statement