Cash account is primarily affected by which transactions in the capital acquisition and repayment cycle?
A) Issue of shares
B) Payment of dividends
C) Both A and B
D) None of the above

Question

Quizplus · Accepted Answer

Cash account is primarily affected by both issue of shares and payment of dividends in the capital acquisition and repayment cycle. Issue of shares results in inflow of cash into the company's account while payment of dividends results in outflow of cash from the company's account. Both these transactions impact the cash balance in the company's account and therefore affect the cash account in the capital acquisition and repayment cycle.

Cash Account Is Primarily Affected by Which Transactions in the Capital