- 1 Marks
Question
Which of the following items involves movement in cash flows?
A. Amortisation charges
B. Depreciation
C. Gain
D. Loss
E. Rent
Answer
Answer: E. Rent
Explanation: Rent is a cash outflow when paid. Amortisation and depreciation are non-cash expenses; gains and losses, while reflected in income statements, may not directly result in cash movements. Therefore, the only option that involves actual cash movement is rent.
- Tags: Amortization, Cash Flow, Depreciation, Gain and Loss, Rent
- Level: Level 1
- Topic: Bank reconciliations
- Series: MAY 2017
- Uploader: Kwame Aikins