A Ltd purchased debentures worth 10 lacs of B Ltd., which are redeemable within three months. How will you show this item in the statement while preparing cash flow statement for the year ended on 31st March, 2018?

A Ltd purchased debentures worth 10 lacs of B Ltd., which are redeemable within three months. How will you show this item in the statement while preparing cash flow statement for the year ended on 31st March, 2018?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A Ltd purchased debentures worth 10 lacs of B Ltd., which are redeemable within three months. How will you show this item in the statement while preparing cash flow statement for the year ended on 31st March, 2018?

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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