Question

Shyam is running a start-up. His initial investments are high and he is trying hard to manage and increase his cash flow. The sundry expenses that his firm incurs is negligible. He found from his accountant that the amount of pre-paid expenses in the balance sheet,
which were booked from the previous year to the current year was increased. Shyam also ensured that his cash funded by the venture capitalists did not reduce when compared to the previous year. The interest that he gets from his fixed deposits increases, which is in tune with his sundry expenses. The final effect on cash for this year would be _____________.

• A. Cash flow marginally increases
• B. Cash flow exponentially increases
• C. Cash flow remains the same
• D. None of the above

Answer 1

Answer: (D)

None of the above

Answer 2

The correct option is (D): None of the above