Which of the Following Is Not a Source of Cash

question 1

Multiple Choice

Which of the following is not a source of cash?

• A)net income
• B)repayment of a bank loan
• C)reduction in accounts receivable
• D)depreciation

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Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in utilizing its assets to generate sales or income, calculated by dividing net sales by the average total assets.

Dividends Per Share

The total dividends declared by a company for each share of its stock.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit customers, calculated by dividing net credit sales by average accounts receivable.

Days' Sales In Receivables

A financial ratio that measures the average number of days it takes for a company to collect payments from its credit sales.