Which One of the Following Is a Source of Cash

question 28

Multiple Choice

Which one of the following is a source of cash?

• A)increase in accounts receivable
• B)decrease in common stock
• C)decrease in long-term debt
• D)decrease in accounts payable
• E)decrease in inventory

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Definitions:

Unacceptable Accounting Practices

Methods or practices that are not in accordance with generally accepted accounting principles (GAAP) or ethical standards.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Stockholders' Equity

Represents the amount of financing provided by the owners of the company and the retained earnings generated by the company's operations.

Paid-in Capital

The total amount of capital that a company has received from shareholders in exchange for shares of stock.