{"id":55635,"date":"2024-04-16T00:30:45","date_gmt":"2024-04-16T00:30:45","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=55635"},"modified":"2024-04-16T00:30:45","modified_gmt":"2024-04-16T00:30:45","slug":"study-the-following-transactions-i-raising-of-short-term-loans-ii-goods-purchased-for-cash-iii-payment-of-bonus-in-the-form-of-shares-iv-issue-of-shares-in-lieu-of-raw-materials-the-flow-of-funds","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/study-the-following-transactions-i-raising-of-short-term-loans-ii-goods-purchased-for-cash-iii-payment-of-bonus-in-the-form-of-shares-iv-issue-of-shares-in-lieu-of-raw-materials-the-flow-of-funds\/","title":{"rendered":"Study the following transactions I. Raising of short-term loans II. Goods purchased for cash III. Payment of bonus in the form of shares IV. Issue of shares in lieu of raw materials The flow of funds is"},"content":{"rendered":"

[amp_mcq option1=”I, II, III and IV” option2=”II, III and IV” option3=”III and IV” option4=”Only IV” correct=”option4″]<\/p>\n

The correct answer is D. Only IV.<\/p>\n

The flow of funds is the movement of money into and out of a business. It is important to track the flow of funds in order to ensure that the business is financially healthy.<\/p>\n

In the given question, only option IV involves the movement of funds. When a company issues shares in lieu of raw materials, it is essentially exchanging shares for goods. This results in a flow of funds from the company to the supplier of the raw materials.<\/p>\n

Options I, II, and III do not involve the movement of funds. When a company raises short-term loans, it does not necessarily mean that it will receive the funds immediately. The funds may be received in the future, and they may be used for a variety of purposes. When a company purchases goods for cash, it is essentially exchanging cash for goods. This does not result in a flow of funds. When a company pays a bonus in the form of shares, it is essentially exchanging shares for cash. This does not result in a flow of funds.<\/p>\n

Therefore, the only option that involves the flow of funds is option IV.<\/p>\n","protected":false},"excerpt":{"rendered":"

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