The conversion of current assets from inventory to receivables to cash provides the ________ of cash used to pay the current liabilities, which represents a(n) ________ of cash.
A) outflow; inflow
B) use; source
C) source; use
D) inflow; outflow

Question

Quizplus · Accepted Answer

The conversion of current assets (inventory and receivables) to cash provides a source of cash, which can be used to pay current liabilities. Therefore, the answer is source; use or choice C.

The Conversion of Current Assets from Inventory to Receivables to Cash