Which of the following transactions is not a direct source of cash?
A) Borrowing cash.
B) Disposal of inventory for cash.
C) Sale and issuance of shares for cash.
D) Sale of services on credit.

Question

Quizplus · Accepted Answer

Sale of services on credit is not a direct source of cash because cash is not received at the time of the transaction. Instead, payment is expected at a later date when the customer settles their account receivable. The other options - borrowing cash, disposal of inventory for cash, and sale and issuance of shares for cash - are all direct sources of cash as they involve immediate cash inflows.

Which of the Following Transactions Is Not a Direct Source