Home › Bihar Board Class 12 (Commerce) › Accountancy › Cash Flow Statement › A firm buys land for 1,00,000 by issuing shares …
A firm buys land for 1,00,000 by issuing shares of equal value. Its investing outflow for this deal is?
A1,00,000
B50,000
CNil
D2,00,000
Answer & Solution
Correct answer: C. Nil
No cash moves in a purchase paid by shares, so the deal produces no cash flow.
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