Which of the Following Is a Use of Cash

question 79

Multiple Choice

Which of the following is a use of cash?

• A)Interest received on investment
• B)Issuing long-term bonds
• C)Dividends paid to stockholders
• D)Loss on sale of investment

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Definitions:

Insurance Settlement

The payment made by an insurance company to a policyholder following a claim, intended to cover losses or damages incurred.

Note Balance

The remaining amount owed on a promissory note after payments have been made.

Refinancing

Replacing an old loan with a new loan, typically with better terms, such as a lower interest rate.

Loss Contingency

A potential financial loss to a company that might occur in the future due to past events or transactions, depending on the outcome of uncertain future events.