Which of the Following Transactions Would Not Be a Source

question 60

Multiple Choice

Which of the following transactions would not be a source of cash:

• A) The firm issues $1 million of short-term debt and invests the proceeds in inventory.
• B) A customer pays an outstanding bill.
• C) The firm sells $10 million of marketable securities.
• D) The firm receives $10 million from an insurance company to compensate for flood damage earlier that month.

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Definitions:

Indirect Pay

Employee compensation that does not take the form of direct wages or salaries, including benefits like health insurance, retirement contributions, and other non-cash rewards.

Compensation Package

The total combination of salary, benefits, bonuses, and any other perks provided to an employee in exchange for their work.

Life And Accident Insurance

A type of insurance that provides compensation in case of death or specific bodily injuries as a result of an accident.

Tax Code

The laws, rules, and regulations that govern tax liabilities and benefits, influencing how individuals and businesses are taxed.