Which of the Following Would Result in an Increase in Cash

question 116

Multiple Choice

Which of the following would result in an increase in cash?

• A) Inventory is purchased using funds from a new equity issue.
• B) A long-term bank loan is obtained.
• C) Existing accounts receivable are written off, that is, considered uncollectible.
• D) A firm reduces its inventory loan at the bank in order to free up a trust receipt.
• E) Accrued liabilities decrease.

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Definitions:

Withdrawal

The action of removing oneself from participation or involvement in a particular activity, situation, or group.

Progression

The process of developing or moving forward towards a more advanced state or goal.

Good Performance

The achievement of specific tasks or goals to a high standard, often measured against pre-determined benchmarks or targets.

Withdrawal

The action of removing oneself from participation in an activity, situation, or group, often as a means of coping or protest.