Flow of cash means the total amount of money being transferred into and out of a business, especially as affecting liquidity. In this question only option c amounts to cash flow. If a machinery of book value 74,000 Rs is sold at a loss of Rs 9,000, the cash inflow will be Rs 65,000. All other options do not constitute a flow of cash in any form but shows mere change in form of assets and liabilities.

In normal case dividend received on investment will be treated as an investment activity. But as this company is a financing company, which is primarily engaged in lending or borrowings of fund, the dividend received on investment is to be written under operating activity. Hence accountant is wrong.

Cash Equivalents are short-term highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of change in value. Cash equivalents are held for the purpose of meeting short term commitments rather than for investments or other purpose. For Example Treasury Bills, Commercial Papers etc.