Which One of the Following Is a Use of Cash

question 60

Multiple Choice

Which one of the following is a use of cash?

• A)Acquisition of bank loan
• B)Sale of common stock
• C)Sale of marketable securities
• D)Decrease in accounts payable
• E)Decrease in inventory

---

Definitions:

Budget Constraint

Constraints on the assortments of products and services available for purchase by a consumer, determined by their financial resources and market prices.

Tangent

A straight line that touches a curve at a single point without crossing it, often used to find the slope of the curve at that point.

Substitution Effect

The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods.

Wage Increase

An upward adjustment in the amount of money that workers are paid per hour, day, or work performed.