Decreases in assets and increases in liabilities and equity represent SOURCES of cash.

Name: Decreases in assets and increases in liabilities and equity represent SOURCES of cash.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Decreases in assets (such as selling inventory or equipment) generate cash, while increases in liabilities and equity (such as borrowing or issuing stock) provide financing and increase available cash. Therefore, they are sources of cash.

Decreases in Assets and Increases in Liabilities and Equity Represent