Question

In: Finance

Which of the following statements is true?


Which of the following statements is true? 

a. Increasing the use of trade credit offered by a supplier is a use of cash. 

b. Cash is decreased when new debt is issued to purchase holiday merchandise. 

c. Collecting an accounts receivable is a use of cash. 

d. Accepting the credit offered by a supplier is a source of cash.

Solutions

Expert Solution

The Correct Answer is (D)

That the Statement that Accepting the credit offered by a supplier is a source of cash is true.

As If the credit period is offered by the Supplier than we can use that cash for some other purpose upto that offered time,

All other statements are false

As collecting an accounts receivable is a source of cash not a use of cash As Cash comes.

in if we issued debt then cash increased not decreased

jeff jeffy answered 2 years ago
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