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Question : Debentures issued for consideration other than cash are not shown in the Cash Flow Statement because__________ is not received against the issue.

Option 1: Debentures

Option 2: Debentures suspense

Option 3: Cash flow from financing activities

Option 4: Cash


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Cash


Solution : Answer = Cash

Debentures issued for consideration other than cash are not shown in the Cash Flow statement because cash is not received against the issue. As per the principle of cash flow reporting, only cash transactions are included, and non-cash transactions such as issuance for consideration other than cash are excluded.
Hence, the correct option is 4.

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