Which of the Following Would Not Be a Use of Funds

question 65

Multiple Choice

Which of the following would not be a use of funds?

• A) increase in an asset account
• B) decrease in a liability account
• C) decrease in an equity account
• D) increase in a liability account

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Definitions:

Cash Collection

The process of receiving and processing payments from customers, including cash, checks, and credit card payments.

Expense Accounts

Financial accounts used to track money spent or costs incurred in a company's operations.

Credits

Entries in accounting that increase liabilities, revenue, or equity accounts, or decrease asset or expense accounts.

Withdrawals

Money or assets taken out of a business by its owner(s) for personal use.