Which of the Following Would Represent a Use of Funds

question 43

Multiple Choice

Which of the following would represent a use of funds and, indirectly, a reduction in cash balances?

• A) an increase in inventories
• B) a decrease in marketable securities
• C) an increase in accounts payable
• D) the sale of new bonds by the firm

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Definitions:

Consumer Protection

Laws and practices designed to ensure the rights of consumers, as well as fair trade, competition, and accurate information in the marketplace.

Third-Party Check

A check that is written by one person or entity to another but is then given to a third party to be cashed or deposited.

Unknown Party

An individual or entity whose identity is not known or cannot be confirmed.

Written Contracts

Legally binding agreements captured in writing that specify the duties, rights, and obligations of each party.