Asked by Arauna Anwar on May 01, 2024
Verified
An increase in inventory is a source of cash.
Inventory
The basic substances, products under manufacturing, and completed items that form part of a company's assets, which are available or will soon be available for purchase.
Source of Cash
Any activity or operation within a business that generates cash, including operations, financing, and investing activities.
- Examine the impact of different financial operations on a company's cash flow.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
False
Explanation :
An increase in inventory represents cash that has been used to purchase more goods, thus it is a use of cash, not a source.
Learning Objectives
- Examine the impact of different financial operations on a company's cash flow.