a.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
b.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
c.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
d.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.
e.
To identify: The given statement is source or use of cash, and also explains the effect on firms cash balance.
Source of cash:
The company needs funds to fulfill the present as well as the future financial needs of the company. The company needs cash to satisfy these financial needs. All the options available to company for procurement of funds are considered as the sources of cash.
Uses of cash:
All the payments made by a company to outsiders are the use of cash. In business cycle one pay to another and this cycle continue till the business ends. The use of cash will reduce the cash balance of the company.

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Chapter 26 Solutions
CORPORATE FINANCE ACCESS CARD
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- I need Provision for Bad Debts:What is a provision for doubtful debts, and how is it recorded in the final accounts?arrow_forwardDo not use ai Accounting Concept:Explain the Consistency Principle in accounting. Why is it important?arrow_forwardDo not solve this question!! Journal Entry:Goods worth $10,000 were sold to a customer on credit. Record the journal entry.arrow_forward
- Do not solve thi Provision for Bad Debts:What is a provision for doubtful debts, and how is it recorded in the final accounts?arrow_forwardDo not solve this type quAccounting Concept:Explain the Consistency Principle in accounting. Why is it important?arrow_forwardNeed help!!! Accounting Concept:Explain the Consistency Principle in accounting. Why is it important?arrow_forward
- Outstanding Income:Commission income of $3,000 is yet to be received at year-end. What is the adjusting entry? Helparrow_forwardno aiJournal Entry:Goods worth $10,000 were sold to a customer on credit. Record the journal entry.arrow_forwardDo not use ai Provision for Bad Debts:What is a provision for doubtful debts, and how is it recorded in the final accounts?arrow_forward
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