A cash inflow takes place when there is a decrease in an asset account or an increase in an equity account.

Name: A cash inflow takes place when there is a decrease in an asset account or an increase in an equity account.
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Question

Quizplus · Accepted Answer

A decrease in an asset account (like receiving cash from accounts receivable) or an increase in an equity account (like issuing new shares for cash) both represent cash inflows to the business.

A Cash Inflow Takes Place When There Is a Decrease