A source of cash can be defined as any activity that:
A) Increases the current assets of a firm.
B) Increases the cash reserves of a firm.
C) Involves accounts receivable or inventory.
D) Involves the sale or return of merchandise by a customer.
E) Involves the spending of cash.

Question

Quizplus · Accepted Answer

A source of cash specifically refers to activities that increase a firm's cash reserves, directly impacting its liquidity and cash position.

A Source of Cash Can Be Defined as Any Activity