{"id":46808,"date":"2024-04-15T22:17:42","date_gmt":"2024-04-15T22:17:42","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=46808"},"modified":"2024-04-15T22:17:42","modified_gmt":"2024-04-15T22:17:42","slug":"cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be\/","title":{"rendered":"Cash received from debtors Rs. 12,000 and furniture purchased Rs. 7,000 the net effect on fund flow will be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Net increase in working captial is Rs. 5,000&#8243; option2=&#8221;Net decrease in working captial is Rs. 5,000&#8243; option3=&#8221;Net increase in working captial is Rs. 19,000&#8243; option4=&#8221;Net decrease in working captial is Rs. 7,000&#8243; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>B. Net decrease in working capital is Rs. 5,000<\/strong><\/p>\n<p>Working capital is the difference between current assets and current liabilities. Current assets are assets that are expected to be converted into cash within one year, such as cash, accounts receivable, and inventory. Current liabilities are liabilities that are due within one year, such as accounts payable and short-term debt.<\/p>\n<p>In this case, cash received from debtors is a current asset, and furniture purchased is a current liability. Therefore, the net effect on working capital is a decrease of Rs. 5,000.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: Net increase in working capital is Rs. 5,000. This is incorrect because the net effect on working capital is a decrease of Rs. 5,000.<\/li>\n<li>Option B: Net decrease in working capital is Rs. 5,000. This is the correct answer.<\/li>\n<li>Option C: Net increase in working capital is Rs. 19,000. This is incorrect because the net effect on working capital is a decrease of Rs. 5,000.<\/li>\n<li>Option D: Net decrease in working capital is Rs. 7,000. This is incorrect because the net effect on working capital is a decrease of Rs. 5,000.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Net increase in working captial is Rs. 5,000&#8243; option2=&#8221;Net decrease in working captial is Rs. 5,000&#8243; option3=&#8221;Net increase in working captial is Rs. 19,000&#8243; option4=&#8221;Net decrease in working captial is Rs. 7,000&#8243; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-46808","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cash received from debtors Rs. 12,000 and furniture purchased Rs. 7,000 the net effect on fund flow will be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cash received from debtors Rs. 12,000 and furniture purchased Rs. 7,000 the net effect on fund flow will be\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Net increase in working captial is Rs. 5,000&#8243; option2=&#8221;Net decrease in working captial is Rs. 5,000&#8243; option3=&#8221;Net increase in working captial is Rs. 19,000&#8243; option4=&#8221;Net decrease in working captial is Rs. 7,000&#8243; correct=&#8221;option2&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T22:17:42+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Cash received from debtors Rs. 12,000 and furniture purchased Rs. 7,000 the net effect on fund flow will be","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be\/","og_locale":"en_US","og_type":"article","og_title":"Cash received from debtors Rs. 12,000 and furniture purchased Rs. 7,000 the net effect on fund flow will be","og_description":"[amp_mcq option1=&#8221;Net increase in working captial is Rs. 5,000&#8243; option2=&#8221;Net decrease in working captial is Rs. 5,000&#8243; option3=&#8221;Net increase in working captial is Rs. 19,000&#8243; option4=&#8221;Net decrease in working captial is Rs. 7,000&#8243; correct=&#8221;option2&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T22:17:42+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be\/","url":"https:\/\/exam.pscnotes.com\/mcq\/cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be\/","name":"Cash received from debtors Rs. 12,000 and furniture purchased Rs. 7,000 the net effect on fund flow will be","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T22:17:42+00:00","dateModified":"2024-04-15T22:17:42+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/cash-received-from-debtors-rs-12000-and-furniture-purchased-rs-7000-the-net-effect-on-fund-flow-will-be\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"accounting","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/accounting\/"},{"@type":"ListItem","position":4,"name":"Cash received from debtors Rs. 12,000 and furniture purchased Rs. 7,000 the net effect on fund flow will be"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/46808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=46808"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/46808\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=46808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=46808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=46808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}