• 1 Marks

FA – Nov 2021 – L1 – SA – Q1 – Accounting Concepts

This question tests knowledge of business cash inflow from disposal of assets.

Which of the following will result in an increase in cash of the business?
A. Drawings from the business
B. Payments for a new asset
C. Proceeds from disposal of non-current assets
D. Payments to suppliers
E. Goods sold on credit to customers

C

Explanation:
The proceeds from the disposal of non-current assets result in a cash inflow because it involves receiving cash in exchange for the sale of an asset. Other options either relate to cash outflows (payments) or involve transactions (such as goods sold on credit) that do not immediately impact

Back to all questions

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form