Blog

State whether the following will increase, decrease or have no effect cash flow from operating activities while preparing ‘Cash Flow Statement’: (i) Decrease in outstanding employees benefits expenses by Rs. 3,000; (ii) Increase in prepaid insurance by Rs. 2,000. (C.B.S.E. 2017)

SOLUTION

(i) It will result in decrease in Cash Flow from Operating Activities.
(ii) It will also result in decrease in Cash Flow from Operating Activities.


Leave a Reply