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Andreyy89
3 years ago
8

Which of the following illustrates an inflow of cash? a. a decrease in common stock b. a decrease in long-term debt c. a decreas

e in inventory d. an increase in fixed assets
Business
1 answer:
Alexeev081 [22]3 years ago
6 0

Answer:

The answer is C.

Explanation:

A decrease in inventory means customers are buying inventories (goods) from the business. It is an inflow because money comes in.

Option A is incorrect because a decrease in common stock means shareholders are withdrawing their shareholding from the business and the business will pay them. This is an outflow.

Option B is incorrect because a decrease in long term debt means the business is paying its debt or redcuing its liability and this is an outflow.

Option D is also incorrect because an increase in fixed assets means the business is buying this asset with cash and this is an outflow

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