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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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