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Commerce · Q500

Accounting

Graduate and Post Graduate · Commerce · question 500

Q500

X company purchased a machine paying cash Rs. 50,000, sold inventory for cash Rs. 10,000 (at cost), and collected bills receivables of Rs. 5,000 during a month. The net effect on fund flow would be:

A.
Rs. 35,000 application of funds
B.
Rs. 35,000 source of funds
C.
Rs. 50,000 application of funds
Answer
D.
Rs. 65,000 application of funds

Answer: Option C

Solution

Answer: Option C
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