Cash purchase of goods is a cash outflow from activity.

operating

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

investing

No worries! We‘ve got your back. Try BYJU‘S free classes today!

financing

No worries! We‘ve got your back. Try BYJU‘S free classes today!

income

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A operating
Cash purchase of goods is a cash outflow from operating activity. Cash flow from operating activities excludes money that is spent on capital expenditures, cash directed to long-term investments and any cash received from the sale of long-term assets.

Suggest Corrections

Similar questions

Q. Purchase of furniture is a cash outflow from activity in a cash flow statement.

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Purchase of Inventory for cash.
(ii) Purchase of goods on credit.
(iii) Sale of Goods costing Rs. 10,000 for Rs. 12,000 for cash.
(iv) Sale fo Goods on Credit.
(v) Purchase of a fixed asset by issue of shares.

Q. State which of the following would result in inflow/outflow or no flow of Cash and Cash Equivalents:
(a) Sale of Fixed Assets, Book Value ₹ 1,00,000 at a profit of ₹10,000.
(b) Sale of goods against cash.
(c) Purchase of machinery for cash.
(d) Purchase of Land and Building for ₹10,00,000. Consideration paid by issue of debentures.
(e) Issued fully paid Bonus Shares.
(f) Cash withdrawn from bank.
(g) Payment of Interim Dividend.
(h) Proposed Dividend.

Q. Put the following on the proper side of Cash account, Debtor's account and Creditor's account:
(a) Sold goods for cash ₹ 60,000.
(b) Sold goods to Hari on credit ₹ 20,000.
(c) Purchased goods from Krishan on credit ₹ 36,000.
(d) Purchased goods from Krishan for cash ₹ 10,000.
(e) Cash received from Hari ₹ 15,000.
(f) Cash paid to Krishan ₹ 28,000.

Q. Cash purchase of trading goods is initially recorded in _______.

Join BYJU'S Learning Program

Cash purchase of goods is a cash outflow from activity.

The correct option is A operatingCash purchase of goods is a cash outflow from operating activity. Cash flow from operating activities excludes money that is spent on capital expenditures, cash directed to long-term investments and any cash received from the sale of long-term assets.

The correct option is A operating
Cash purchase of goods is a cash outflow from operating activity. Cash flow from operating activities excludes money that is spent on capital expenditures, cash directed to long-term investments and any cash received from the sale of long-term assets.