Question : Cash inflow arises when the net effect of the transaction is ____________in the amount of Cash and Cash Equivalents.
Option 1: increase
Option 2: decrease
Option 3: Both 1 and 2
Option 4: None of above
Answer (1)
24th Jan, 2024
Correct Answer: increase
Solution :
Answer =
Increase
Transactions that increase Cash and Cash Equivalents are inflows, whereas transactions that decrease it are outflows of Cash and Cash Equivalents. This typically occurs when there is a receipt of cash, such as from sales revenue, collections from debtors, or proceeds from investments.
Hence, the correct option is 1.
Comments (0)
