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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