1 Which of the following is not a source of cash a Net incom

1. Which of the following is not a source of cash?

a) Net income

b) Repayment of a bank loan

c) Reduction in accounts receivable

d) Depreciation

2. The two most common examples of accruals are

a) Trade credit and accounts payable

b) Wages and accounts payable

c) Taxes and accounts receivable

d) Taxes and wages

3. Working capital refers to the total investment in

a) Current assets

b) Current liabilities

c) Cash and marketable securities

d) Current assets minus current liabilities

Solution

1 b. repayment of bank loan

2. d. Taxes and wages

3 d. current assets minus current liabilities