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Question

Which of the following is not a cash inflow?

A
Decrease in debtors
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B
Issue of shares
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C
Decrease in creditors
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D
Sale of fixed assets
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Solution

The correct option is C Decrease in creditors
Funds received by a company due to sales, financing or investments. Cash inflow are used to gauge the overall financial health of a business, and a company with a large and stable cash inflow can be considered to be in a good financial position.

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