Which of the following is not considered a cash inflow?

Which of the following is not considered a cash inflow?

• A. Sales revenue
• B. Loan received
• C. Supplier payments
• D. Owner investments

Answer: (C)

Cash inflows represent money coming into a business, while cash outflows are money going out. In this context, supplier payments are categorized as cash outflows rather than inflows. This is because supplier payments involve spending funds to settle debts or purchase goods and services necessary for operations. On the other hand, sales revenue, loan received, and owner investments all result in an increase in cash for the business. Sales revenue comes from the sale of products or services, a loan received adds cash resources that can be utilized for various purposes, and owner investments inject additional funds into the business, all contributing to cash inflow. Understanding these distinctions is essential for effective financial management and budgeting within a business.

Cash inflows represent money coming into a business, while cash outflows are money going out. In this context, supplier payments are categorized as cash outflows rather than inflows. This is because supplier payments involve spending funds to settle debts or purchase goods and services necessary for operations.

On the other hand, sales revenue, loan received, and owner investments all result in an increase in cash for the business. Sales revenue comes from the sale of products or services, a loan received adds cash resources that can be utilized for various purposes, and owner investments inject additional funds into the business, all contributing to cash inflow. Understanding these distinctions is essential for effective financial management and budgeting within a business.