Which One of These Will Cause an Increase in the Cash

question 106

Multiple Choice

Which one of these will cause an increase in the cash flow to creditors for the current year?

• A)Collection of a refund for the overpayment of a loan
• B)Payoff of a 36-month loan after the first 15 months
• C)Payment of a late charge on an account payable to a supplier
• D)Acquiring a new loan that will be repaid in one lump sum 24 months from now
• E)Purchasing inventory using credit offered by a supplier

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Definitions:

Appellate Court

An Appellate Court is a higher court that reviews the decisions of lower courts to ensure legal errors were not made during the proceedings.

Arbitrator's Decision

The final ruling or determination made by an arbitrator, who is a neutral third party chosen to resolve a dispute.

Appellate Court

A court having jurisdiction to review decisions of lower courts or administrative agencies, often focusing on matters of law rather than fact.

Alternative Dispute Resolution

A method for settling disputes outside of the courtroom, such as through arbitration or mediation.