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On a cash flow diagram, an arrow pointing upward conventionally represents a

  • A.disbursement
  • B.loan repayment
  • C.depreciation charge
  • D.receipt

Answer: D

Upward for money coming in and downward for money going out is the usual convention, though the matters is only that it be applied consistently throughout. The diagram is drawn from the point of view of one party, so a lender's and a borrower's diagrams are mirror images.

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