Question

The flow of fund is said to have taken place when–
(A) cash is paid to creditors
(B) cash is received from debtors
(C) machinery is purchased for cash
(D) All of the above

Answer 1

answer - option (d) - all of the above

Reason :

as per accounting standard 3 (revised) flow of fund is said to be taken place when cash is paid to creditors where cash flows out of the company

2)cash is received from debtors is where fund flows to the company

3)machinery purchased of cash is cash flow of fund goes out of company ..

this reason shows that The flow of fund is said to have taken place when all of the above transactions ..

Hope its useful..!!