Multiple choice Which of the following transactions results in inflow or outflow of cash? The acquisition of assets by assuming directly related liabilities. The acquisition of an enterprise by issuing of shares. Conversion of debt to equity. Amount received from debtors. Reveal answer Fill a bubble to check yourself D Correct answer Explanation It is a cash transaction. As the amount is received from debtors, they would pay us the cash. Hence, it is a cash transaction. As there is inflow or coming in of cash, it is a cash transaction.