A source of cash is deﬁned as:
A) Any transaction which increases the value of an asset account.
B) Any statement of ﬁnancial position account which increases in value.
C) The change in a ﬁrm's liquid accounts over a stated period of time.
D) Any activity which brings in cash to the ﬁrm.
E) Any activity which decreases the liabilities of a ﬁrm.

Question

Quizplus · Accepted Answer

A source of cash refers to any activity that brings cash into the firm, such as revenue from sales or financing activities.

A Source of Cash Is Deﬁned As