Which of the Following Changes Is Considered a Source of Cash

question 110

Multiple Choice

Which of the following changes is considered a source of cash when preparing a statement of cash flow?

• A)An increase in property, plant, and equipment
• B)A decrease in accounts payable
• C)A decrease in inventories
• D)An increase in accounts receivable
• E)A decrease in accrued wages

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Definitions:

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Strategic Alliance

A formal agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.

Vertical Integration

A strategy where a company expands its operations by taking over or merging with other companies that are at different stages of production or distribution in the same industry.

Merger

The combination of two or more companies into one, with the goal of increasing market share or efficiency.