Increase in the amount of debtors results in ____________.

Increase in cash

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Decrease in cash

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No change in cash

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Increase in funds

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Solution

The correct option is C Decrease in cash
A debtor is a person who owes money.
In other words, debtor is a person who borrows money and is obliged to pay the amount in a certain period of time.
Hence, increase in the amount of debtors results in decrease in cash of the company.

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