Will ‘acquisition of machinery by issue of equity shares’ be considered while preparing ‘Cash Flow Statement’? Give reason in support of your answer. Post category:Accountancy Reading time:1 mins read SOLUTION It will not be considered while preparing cash flow statement because there is no flow of cash. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostNormally, what should he the maturity period for a short-term investment from the date of its acquisition to be qualified as cash equivalents? (C.B.S.E. 2017) Next PostState whether the following will increase, decrease or have no effect cash flow from operating activities while preparing ‘Cash Flow Statement’: (i) Decrease in outstanding employees benefits expenses by Rs. 3,000; (ii) Increase in prepaid insurance by Rs. 2,000. (C.B.S.E. 2017) You Might Also Like State any one difference between Fixed Capital Accounts and Fluctuating Capital Accounts of partners. (Al 2014 C) October 7, 2022 Mention two ratios in which both the figures are from Balance Sheet. October 3, 2022 For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing: (a) Acquired machinery for Rs. 2,50,000 paying 20% by cheque and executing a bond for the balance payable. (b) Paid Rs. 2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of Rs. 50,000 after acquisition. (c) Sold machinery of original cost of Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000. August 18, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.