Which of the Following Increases Cash

question 11

Multiple Choice

Which of the following increases cash?

• A) depreciation expense
• B) acquisition of treasury stock
• C) borrowing money by issuing a six-month note
• D) the declaration of a cash dividend

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.

Spot Price

The present market cost at which an asset can be purchased or sold for instant delivery.

Contract Maturity

The specified date on which the contract expires and the financial transaction must be settled or completed.

Basis

In finance, basis refers to the difference between the spot price of an asset and its future price, or it can signify the foundation or underlying principle for something.