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    Question

    For a manufacturing concern, what will be the effect of

    increase in debtors on the Cash flow Statement?
    A -ve effect on Cash position under Operating Activities Correct Answer Incorrect Answer
    B +ve effect on Cash position under Operating Activities Correct Answer Incorrect Answer
    C -ve effect on Cash position under Financing Activities Correct Answer Incorrect Answer
    D +ve effect on Cash position under Financing Activities Correct Answer Incorrect Answer
    E No effect on the Cash position Correct Answer Incorrect Answer

    Solution

    There is an inherent blockage of cash in debtors

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