[amp_mcq option1=”Bills issued to creditors” option2=”Shares issued for machinery” option3=”Cash realised from debtors” option4=”Debentures issued partly for cash and partly for raw materials” correct=”option3″]<\/p>\n
The correct answer is: C. Cash realised from debtors<\/strong><\/p>\n A flow of funds is a movement of money from one entity to another. In this case, the money is flowing from the debtors to the company. This is because the debtors owe money to the company, and they are now paying it back.<\/p>\n The other options do not result in a flow of funds. In option A, bills are issued to creditors. This means that the company is borrowing money from the creditors. However, there is no movement of money at this point. The money will only flow when the company repays the loan.<\/p>\n In option B, shares are issued for machinery. This means that the company is selling shares to raise money to buy machinery. However, there is no movement of money at this point. The money will only flow when the company sells the shares.<\/p>\n In option D, debentures are issued partly for cash and partly for raw materials. This means that the company is borrowing money from investors and using the money to buy raw materials. However, there is no movement of money at this point. The money will only flow when the company repays the loan.<\/p>\n Therefore, the only option that results in a flow of funds is option C.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Bills issued to creditors” option2=”Shares issued for machinery” option3=”Cash realised from debtors” option4=”Debentures issued partly for cash and partly for raw materials” correct=”option3″]<\/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-54982","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n