The correct answer is: A. Appreciation in value of buildings
Appreciation in value of buildings is an increase in the value of a building over time. This can happen for a number of reasons, such as inflation, changes in the market value of real estate, or improvements made to the building. When a building appreciates in value, it can result in a flow of funds to the owner of the building. This is because the owner can sell the building for a higher price than they originally paid for it, or they can borrow money against the increased value of the building.
Depreciation of assets is a decrease in the value of an asset over time. This can happen for a number of reasons, such as wear and tear, obsolescence, or changes in the market value of the asset. When an asset depreciates in value, it can result in a flow of funds out of the business. This is because the business will have to record a loss on the depreciation of the asset, which will reduce its net income.
Purchase of furniture is a transaction in which a business acquires furniture. This can be done by buying furniture from a supplier, or by making furniture in-house. When a business purchases furniture, it will have to record an expense for the purchase. This expense will reduce the business’s net income.
Writing off goodwill is a process in which a business reduces the value of its goodwill. Goodwill is an intangible asset that represents the value of a business’s reputation and customer base. When a business writes off goodwill, it will record a loss on its income statement. This loss will reduce the business’s net income.
In conclusion, the only option that will result in a flow of funds is A. Appreciation in value of buildings.