Question
Which one of the following is a source of cash? Multiple Choice Ο Repurchase of common...
Which one of the following is a source of cash? Multiple Choice Ο Repurchase of common stock Ο Acquisition of debt Ο Purchase of inventory Ο Payment to a supplier Ο Granting credit to a customer
Which one of the following is a source of cash? Multiple Choice Ο Increase in accounts receivable Ο Decrease in common stock Ο Increase in fixed assets Ο Decrease in accounts payable Ο Decrease in inventory
Answers
B. Acquisitions of Debt
Because it is a Long term source of borrowing for firm as the debt increase the firm will have more cash so the acquisition of debt is included source of cash.
C. Decrease in Inventory
because as the level of Inventory decrease that means you have sold those Inventory which resulted into revanue and it will ultimately a source of cash for the company.
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