In: Accounting
Which of the following provides an increase in a company's cash position (source of cash)?
None of the answers is correct
Increase in inventory
Decrease in accounts payable
Increase in fixed assets
Decrease in accounts receivables
The company's cash position increases when the assets is sold or reduced and the liabilities are deffered or increase in liabilities.
In the given case , increase of inventory and increase in fixed assets will reduce the cash position as it need to be paid.
Further decrease in accounts payable will also have the same effect of excess cash payment.
Decrease in accounts receivable means the cash is being received more that means it will increase the cash position.
Hence option - E is correct.
Decrease in Accounts receivable.