Which of the Below Is a SOURCE of Cash

question 106

Multiple Choice

Which of the below is a SOURCE of cash?

• A)Cash Sales
• B)Wages and Salaries
• C)Rent or Lease payments
• D)Dividend payments

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Definitions:

Goods Sold

Refers to products that have been sold and transferred from the seller to the buyer.

Cash Purchase Discount

A reduction in the amount paid for goods or services in exchange for paying in cash rather than credit.

Interest Expense

The cost incurred by an entity for borrowed funds, often a significant component of financial expense in the income statement.

Late Payment

A situation where a borrower has failed to make loan or debt repayments by the due date, often resulting in penalties.