Cash inflows from business transactions

Steps:

• Identify cash inflows as actual receipts of money into the business.
• Evaluate each option for direct cash movement.
• Eliminate non-cash accounting entries like reserves or revaluations.
• Confirm the option involving asset disposal for proceeds.

Why C is correct:

• Proceeds from selling a non-current asset represent actual cash received, per the cash flow statement's investing activities section.

Why the others are wrong:

• A: Transfer to general reserves is an internal accounting reallocation with no cash impact.
• B: Issue of bonus shares capitalizes reserves into equity without generating new cash.
• D: Revaluation of an asset adjusts book value on the balance sheet but involves no cash exchange.

Final answer: C