DECA Retail Merchandising Practice Exam

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Prepare for the DECA Retail Merchandising Exam. Utilize flashcards and multiple choice questions, each with detailed hints and explanations. Ensure you're ready to succeed on the exam!

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Which of the following describes a cash inflow from operations?

Revenue from selling inventory
Payments made to suppliers
Loan repayments
Investment purchases

The correct answer is: Revenue from selling inventory

A cash inflow from operations refers to the money received by a business as a result of its core operating activities. This includes revenue generated from selling products or services to customers. When a company sells inventory, it receives cash or cash equivalents, thereby increasing its cash balance. This revenue is a crucial aspect of a company's operational success and is a key indicator of its ability to generate profit from its primary business activities. The other options pertain to financial activities that do not qualify as operational cash inflows. Payments made to suppliers represent an outflow, as money is being spent rather than received. Loan repayments relate to debt servicing and do not come from operational activities; rather, they fall under financing activities. Investment purchases involve expenditures for acquiring assets, which is also an outflow. Therefore, the sale of inventory directly contributes to cash inflows from operations, making it the correct answer.