Which one of these will cause an increase in the cash flow to creditors for the current year?
A)Collection of a refund for the overpayment of a loan
B)Payoff of a 36-month loan after the first 15 months
C)Payment of a late charge on an account payable to a supplier
D)Acquiring a new loan that will be repaid in one lump sum 24 months from now
E)Purchasing inventory using credit offered by a supplier

Question

Quizplus · Accepted Answer

Paying off a loan early increases the cash flow to creditors because it involves sending cash to the creditor to settle the debt ahead of the original schedule.

Which One of These Will Cause an Increase in the Cash