Question

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Which one of the following is a source of cash? increase in accounts receivable decrease in...

Which one of the following is a source of cash?

increase in accounts receivable

decrease in notes payable

decrease in common stock

decrease in accounts payable

increase in inventory

all of the above

none of the above

Solutions

Expert Solution

None of the above.

Increase in the accounts receivables is a use of cash because there is no cash inflow from this.

In the same way all the line items mentioned are use of cash because cash is flowing out.

Hence, there is no source of cash from atleast one of the above line items

jeff jeffy answered 2 years ago
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