Question

"______ implies movement of cash in and out of non-cash items. Receipt of cash from a non-cash item is termed as cash inflow while cash payment in respect of such items as cash outflow"

Options

• Cash and Cash Equivalents

• Cash Flows

• Cash

• None of these

Answer 1

"Cash Flows implies movement of cash in and out of non-cash items. Receipt of cash from a non-cash item is termed as cash inflow while cash payment in respect of such items as cash outflow"

Explanation:

The term "cash flows" refers to the movement of money into and out of non-monetary items. Cash inflow is the receipt of monetary from a non-cash item, while cash outflow is the payment of cash for such products. For example, purchasing machinery with cash is a cash outflow, whereas receiving selling revenues from the sale of machinery is a cash inflow.