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Car purchased on loan-effect on balance sheet

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Querist : Anonymous

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Querist : Anonymous (Querist)
25 September 2015 what will be effect on cash flow if car purchased on loan whether it would be shown in net operating activities??????

05 October 2015 Hi,
There is no effect in cash flow statement, as there is no outflow of cash.

Further, even if car purchased through cash, there will be effect in investing activities and not in operating activities,only the depreciation amount will be added to the Profit shown in Cash Flow Statement.



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