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

Expert Solution

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.

ekkarill92 answered 1 year ago

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Question

Which of the following provides an increase in a company's cash position (source of cash)?

Solutions

Expert Solution

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