Which of the following would not be a source of funds?
A) decrease in an equity account
B) increase in a liability account
C) decrease in an asset account
D) cash sales

Question

Quizplus · Accepted Answer

A decrease in an equity account would not be a source of funds. Instead, it typically indicates a distribution to owners or a loss, which reduces the company's available funds. Increases in liabilities (B) indicate borrowing, decreases in assets (C) can free up funds (if the asset is converted to cash or reduces cash outflows), and cash sales (D) directly increase available funds.

Which of the Following Would Not Be a Source of Funds