Purchase of machinery by issuing shares, redemption of debentures by issuing shares, and issue of debentures as collateral are all non-cash transactions. Purchase of land by taking a loan involves two cash flows - loan receipt (financing inflow) and land payment (investing outflow), making it a cash transaction.
Identify the cash transaction from the following :
CUET UG 2023 — Accountancy Financial Statements
2023mcqmedium
Identify the cash transaction from the following :
Official previous-year question
Held on 28 May 2023 · Verified 13 Jul 2026.
Options
- A
Purchase of machinery by issue of preference shares
- B
Redemption of Debentures by issuing equity shares
- C
Issue of Debentures as collateral security
- D
Purchase of land by taking loan
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