Question

Cash deposited into bank is classified as:

• A. Cash Flow from Operating Activities
• B. Cash Flow from Financing Activities
• C. Cash Flow from Investing Activities
• D. Not shown in Cash Flow Statement

Hint:

Transactions between cash and bank are not shown in Cash Flow Statement because both are cash equivalents.

Answer 1

The Correct Option is D

Concept: Cash Flow Statement records inflow and outflow of cash and cash equivalents between business and outsiders. Transfer between: \[ \text{Cash} \leftrightarrow \text{Bank} \] does not change total cash and cash equivalents.

Step 1: Understanding internal transfers.
Depositing cash into bank only changes form of cash. \[ \text{Cash decreases} \] \[ \text{Bank balance increases} \] Total cash equivalent remains same.

Step 2: Effect on Cash Flow Statement.
Since there is no overall inflow or outflow: \[ \text{No effect} \]

Step 3: Final answer.
Therefore: \[ \boxed{\text{Not shown in Cash Flow Statement}} \] Correct option: \[ \boxed{(D)} \]