Multiple choice

Which of the following is not a cash inflow from extraordinary item?

  1. Winning cash from gambling

  2. Refund of tax paid earlier under dispute

  3. Cash received from playing online games

  4. Cash received from interest on investment
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The cash received from interest on investment is the cash received from the ordinary item. As when we invest somewhere we can expect to receive, the interest with surety. Hence, it is the cash inflow from the ordinary item.

Keep practicing — related questions