question archive Which of the following is a cash inflow? A) An increase in dividend payment B) a decrease in accrued liabilities C) A decrease in accounts receivable D) a decrease in accounts payable
Which of the following is a cash inflow? A) An increase in dividend payment B) a decrease in accrued liabilities C) A decrease in accounts receivable D) a decrease in accounts payable
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Which of the following is a cash inflow?
A) An increase in dividend payment
B) a decrease in accrued liabilities
C) A decrease in accounts receivable
D) a decrease in accounts payable
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Answer:
The correct answer is c.
Decrease in accounts receivable means reduction in the value of debtors of the firm and hence there is a cash inflow on account of reduction in accounts receivables.
