Which One of the Following Is a Use of Cash

question 35

Multiple Choice

Which one of the following is a use of cash?

• A)Issuing new shares of stock
• B)Increasing accounts payable
• C)Decreasing inventory
• D)Decreasing fixed assts
• E)Increasing accounts receivable

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Definitions:

Operating Segments

Components of an enterprise engaged in business activities from which it may earn revenues and incur expenses, including discrete financial information available.

Gross Margins

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage, indicating the efficiency of sales relative to production costs.

Cost Centres

Parts of an organization that do not directly generate revenue but incur costs, such as departments or divisions, which are important for budgeting and cost control.

Reportable Segments

Operating segments of a business that meet specific criteria requiring separate reporting under financial reporting standards.