Question

Which transaction of the following is reflective of cashflow? A. The company sells a machine B....

Which transaction of the following is reflective of cashflow?

A. The company sells a machine

B. Company buys inventory

C. The company receives a bank loan.

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Answer #1

A company selling a machine or buying inventory may be credit transactions and dont guarantee a cash flow, but when a company receives a bank loan, it definitely see cash inflow and so we can be sure that option C is correct while we cant be sure of option A and B

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