Question

Abundance homes had the following cash transactions for the month ended 31, .

A) Received cash from property sales
B) Paid cash for construction materials
C) Collected cash from tenants for rent
D) Received cash from a loan obtained from the bank

Answer 1

Abundance Homes had the following cash transactions for the month ended 31:

A) Cash received from property sales.

C) Cash collected from tenants for rent.

D) Cash received from a loan obtained from the bank.

Step-by-step explanation:

During the month, Abundance Homes received cash from property sales (A), collected cash from tenants for rent (C), and received cash from a loan obtained from the bank (D). These transactions contribute to the company's cash inflows. On the other hand, the payment for construction materials (B) is a cash outflow, reducing the overall cash balance. Managing these cash inflows and outflows is crucial for the financial health and operation of a real estate business like Abundance Homes.