Which One of the Following Is a Use of Cash

question 282

Multiple Choice

Which one of the following is a use of cash?

• A) Decrease in inventory.
• B) Increase in accounts payable.
• C) Decrease in fixed assets.
• D) Decrease in equity.
• E) Increase in long-term debt.

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Definitions:

Exchange Rate

The price of one currency in terms of another currency, used for converting one currency into another.

Revenues And Expenses

Terms referring to the income generated from business activities and the costs incurred to earn that income, respectively.

Specific Day

A precise date identified for a particular event or activity.

Gain Or Loss

A financial result that indicates the difference between the sale price of an asset and its original purchase price.