Why treasury bills matured does not have any effect on cash flow statement? As we get interest along with principal amount so it should treated as cash inflow?

Riya,

Treasury bills are a part of cash and cash equivalents. That is, certain assets are equivalent to holding cash. Any increase/decrease in their value will not have an impact on the available cash balance.

For instance, I may keep Rs 10,000 with me as cash or I may buy gold jewellery worth Rs 10,000. In both the cases, my cash position remains the same. This is because gold jewellery is a highly liquid asset which can be converted into cash easily.

Likewise, when treasury bills mature, on one hand cash and cash equivalents are decreasing (decline in treasury bill) while on the other hand, cash and cash equivalents increase (cash receipt on maturity of treasury bill). This simultaneous increase and decrease nullifies and hence there is no impact on the Cash Flow Statement.

Hope you understood now!

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Because they are current investment as there maturity period is less than 1year.
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