Which One of the Following Is a Use of Cash

question 7

Multiple Choice

Which one of the following is a use of cash?

• A)Selling inventory at cost
• B)Paying a supplier for inventory you purchased last month
• C)Borrowing money from a local bank
• D)Collecting payment from a customer
• E)Selling a fixed asset such as a piece of machinery

Understand the sources and processes of aquifer recharge.

Identify the distribution of freshwater and saltwater on Earth.

Recognize the environmental impact of human constructions on waterborne diseases.

Comprehend the methods and principles of groundwater replenishment.

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Definitions:

Ratios

Financial metrics used to make comparisons between different aspects of a company's performance or financial position, to assess its health, efficiency, and profitability.

Basic Earning Power Ratio

A financial metric that indicates how well a company's assets are generating income before the effects of taxes and financing costs.

Financial Leverage

The extent to which fixed-income securities (debt and preferred stock) are used in a firm’s capital structure. If a high percentage of a firm’s capital structure is in the form of debt and preferred stock, then the firm is said to have a high degree of financial leverage.

Tax Effects

The impact of taxation on an individual's or company's financial decisions or situations, especially regarding how investments and financial strategies are structured.