which one of the following is a source of cash? course hero

Which one of the following is the source of cash?

Q.Which of the following is source of cash?A.cash deposited into bankB.cash withdrawn from bankC.sale of goods costing ₹10,000 for ₹8,000D.sale of marketable securities for cash1 more row

What is a source of cash give five examples?

Cash from operations is usually the most reliable flow of cash in a company. Other source of cash examples include the cash flowing in from the sales of products and services, interest on debt instruments and dividends received. Cash flows out for operating activities such as inventory purchases, payroll and taxes.

What are the source and uses of cash?

The five primary categories of a sources and uses of funds statement are beginning cash balances, cash flows from operating activities, cash flows from investing activities, cash flows from financing activities, and ending cash balances. If all cash is accounted for unlocated funds will be zero.Aug 26, 2020

Is granting credit to a customer a source of cash?

Answer and Explanation: 1) The answer is: E. accepting credit from a supplier. Accepting trade credit from a supplier is a source of cash because companies are able to obtain...

Which of the following is not a source of cash?

Q.Which of the following is not source of cash?B.purchase of machineryC.sale of assetD.dividend receivedAnswer» b. purchase of machinery1 more row

What are external sources of cash?

External sources of finance refer to money that comes from outside a business. There are several external methods a business can use, including family and friends, bank loans and overdrafts, venture capitalists and business angels, new partners, share issue, trade credit, leasing, hire purchase, and government grants.

What are the 3 types of cash flows?

There are three cash flow types that companies should track and analyze to determine the liquidity and solvency of the business: cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. All three are included on a company's cash flow statement.Feb 28, 2022

What are examples of uses of cash?

One way of approaching this problem is a basic understanding of the three sources and uses of cash – Operating, Investing, and Financing.Operating Activities. ... Investing Activities. ... Financing Activities.Sep 10, 2010

How do you give credit to customers?

Giving Your Customers Credit: Do's and Don'tsDo check references. Call your customers' vendors and find out if they pay their bills on time. ... Do use a credit application. ... Do get a credit report. ... Do establish a credit policy. ... Don't extend too much credit. ... Don't extend credit informally. ... Do consider the company type.

What are credit sales?

Credit sales are payments that are not made until several days or weeks after a product has been delivered. Short-term credit arrangements appear on a firm's balance sheet as accounts receivable and differ from payments made immediately in cash.

What are the reasons for granting credit?

Let's take a look at some of the reasons why you might want to offer credit.You gain customers. ... You get people talking. ... You encourage large purchases. ... You show stability. ... You stand up against competition. ... The possibility of missed payments. ... You might have to pay collection agency. ... You might have to pay legal fees.More items...•Sep 13, 2016