10 Questions
Selling products on credit does not result in cash inflow for a business.
False
Borrowing money from an external source will cause cash to flow into a business.
True
Selling assets like property can lead to cash outflow instead of inflow for a business.
False
Investors, such as shareholders, putting more money into a business does not contribute to cash inflow.
False
The purchase of new equipment for the business is considered a method for cash flow into a business.
False
Paying off loans is one of the ways cash can flow out of a business.
True
Purchasing goods on credit leads to cash outflow for a business.
False
Buying non-current assets contributes to cash inflow for a business.
False
Paying wages and salaries in cash does not affect the cash flow of a business.
False
Paying immediate creditors of the business does not impact cash flow.
False
Explore different ways that cash flows into a business, including sales of products, payments from debtors, borrowing money, selling assets, and investments from shareholders.
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