An increase in a current asset (stock, prepaid expenses, bills receivable) means cash has been applied, so it is a cash outflow. Outstanding expenses are a current liability; an increase means expense has been recorded without actually paying cash, representing a source of cash, not an outflow.
Which one of the following is not a 'Cash Outflow'?
CUET UG 2022 — Accountancy Financial Statements
2022mcqmedium
Which one of the following is not a 'Cash Outflow'?
Official previous-year question
Held on 8 Aug 2022 · Verified 13 Jul 2026.
Options
- A
Increase in stock
- B
Increase in prepaid expenses
- C
Increase in outstanding expenses
- D
Increase in bills receivable
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