Which of the following are external sources of cash flow?

Depreciation

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Creating of reserves

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Gains from sale of fixed assets

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Issue of new shares

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Solution

The correct option is D Issue of new shares
Cash received by the issue of new shares is considered an external source of cashflow as the money/funds are received from outside the company , i.e. investors and not generated internally.

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Similar questions

Q. Which of the following are sources of funds?
(I) Issue of shares.
(II) Cash collected from debtors
(III) Sales of assets
(IV) Redemption of debentrues
(V) Payment of dividend

Q. Which of the following are new sources of external recruitment, except _______?

Assuming that the Debt-Equity Ratio is 2 : I, state, giving reasons, which of the following transactions would (I) Increase; (ii) Decrease; (ii.) Not alter the Debt-Equity Ratio :

(i) Issue of new shares (Preference/Equity) for Cash.

(ii) Issue of new shares (Preference/Equity) against purchase of fixed asset.

(iii) Buy-back of its own shares by a Company.

(iv) Issue of Debentures for Cash.

(v) Issue of Debentures against purchase of fixed asset.

(vi) Repayment of Long-term Borrowings.

(vii) Conversion of Debentures into Equity Shares/Preference Shares.

(viii) Sale of a fixed asset at par.

(ix) Sale of a fixed asset at profit.

(x) Sale of a fixed asset at loss.

(xi) Purchase of a fixed asset on a credit of 2 months.

(xii) Purchase of a fixed asset on long-term deferred payment basis.

(xiii) Issue of Bonus Shares.

Q. Which of the following is not external sources of cash?

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Sale of a fixed asset (book value Rs. 15,000) at a loss of Rs. 5,000
(ii) Cash received from Trade Receivables Rs. 9,000 and allowed discount Rs. 1,000.
(iii) Cash paid to Trade Payables.
(iv) Shares issued for Cash.
(v) Buy- back of Equity Shares.

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Which of the following are external sources of cash flow?

The correct option is D Issue of new sharesCash received by the issue of new shares is considered an external source of cashflow as the money/funds are received from outside the company , i.e. investors and not generated internally.

The correct option is D Issue of new shares
Cash received by the issue of new shares is considered an external source of cashflow as the money/funds are received from outside the company , i.e. investors and not generated internally.