Cash Flow Sources in Business

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Questions and Answers

Selling products on credit does not result in cash inflow for a business.

False (B)

Borrowing money from an external source will cause cash to flow into a business.

True (A)

Selling assets like property can lead to cash outflow instead of inflow for a business.

False (B)

Investors, such as shareholders, putting more money into a business does not contribute to cash inflow.

<p>False (B)</p> Signup and view all the answers

The purchase of new equipment for the business is considered a method for cash flow into a business.

<p>False (B)</p> Signup and view all the answers

Paying off loans is one of the ways cash can flow out of a business.

<p>True (A)</p> Signup and view all the answers

Purchasing goods on credit leads to cash outflow for a business.

<p>False (B)</p> Signup and view all the answers

Buying non-current assets contributes to cash inflow for a business.

<p>False (B)</p> Signup and view all the answers

Paying wages and salaries in cash does not affect the cash flow of a business.

<p>False (B)</p> Signup and view all the answers

Paying immediate creditors of the business does not impact cash flow.

<p>False (B)</p> Signup and view all the answers

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