1 answer

How did you get the "cash" money?

Question:

how did you get the "cash" money?


Answers

Cash will be generate from three main categories -

Operating Activities - By selling the goods for cash, rendering services for cash, receiving of rent revenue and other operating revenues etc.,, the cash can be generated and the same account will be increased.

Investing Activities - By selling or reselling of assets, investments, receipt of dividends or interest generated from the amount invested as asset in to the business etc., the cash can be generated and the same account will be increased.

Financing Activities - By selling or reselling of shares, issuing bonds or notes payable etc, cash can be generated and the same account will be increased.

These are the three areas where a company or a solo proprietor (capital) or a partnership firm (capital), the cash or money can be generated.

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