Which of the Following Would Be Classified as a Use

question 107

Multiple Choice

Which of the following would be classified as a use of cash?

• A) An increase in accounts payable.
• B) A decrease in marketable securities.
• C) A decrease in accounts receivable.
• D) An increase in retained earnings.
• E) An increase in inventories.

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Definitions:

Defined Contribution

A type of retirement plan where the amount invested is defined, but the future benefits are not guaranteed and depend on investment performance.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB).

Discount Rate

The rate of interest applied in discounted cash flow analysis to calculate the present value of forthcoming cash flows.

Defined Contribution Plan

A retirement plan where the employer, employee, or both make contributions on a regular basis, with final benefits dependent on investment performance.