Cash received from debtors would be deemed as___________of funds.
Correct answer: A. No flow
- A. No flow
- B. Sources
- C. Uses
- D. Gain
Explanation
Cash collected from debtors changes one current asset, receivables, into another, cash. Since total current assets and working capital do not change, it is treated as no flow of funds.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
Practise Financial Statements
128 free Financial Statements MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Financial Statements questions
Generally the term fund is used to mean the difference between?
Payments received in advance from a customer for a contract can be__________?
If a company has contingent liabilities, they appear in the__________?
Revenue receipts are shown in___________?
Capital expenses are shown in___________?
Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?