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 in cash to the firm, such as sales revenue, receiving a loan, or selling an asset. The other options do not specifically describe activities that increase the firm's cash.

A Source of Cash Is Defined As