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Questions and Answers
Selling products on credit does not result in cash inflow for a business.
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.
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.
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.
Investors, such as shareholders, putting more money into a business does not contribute to cash inflow.
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The purchase of new equipment for the business is considered a method for cash flow into a business.
The purchase of new equipment for the business is considered a method for cash flow into a business.
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Paying off loans is one of the ways cash can flow out of a business.
Paying off loans is one of the ways cash can flow out of a business.
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Purchasing goods on credit leads to cash outflow for a business.
Purchasing goods on credit leads to cash outflow for a business.
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Buying non-current assets contributes to cash inflow for a business.
Buying non-current assets contributes to cash inflow for a business.
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Paying wages and salaries in cash does not affect the cash flow of a business.
Paying wages and salaries in cash does not affect the cash flow of a business.
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Paying immediate creditors of the business does not impact cash flow.
Paying immediate creditors of the business does not impact cash flow.
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