Which of the Following Are Uses of Cash

question 36

Multiple Choice

Which of the following are uses of cash?
I.collecting a receivable
II.increasing inventory
III.obtaining a bank loan
IV.paying a supplier for previous purchases

• A)I and III only
• B)II and IV only
• C)I and II only
• D)I, II, and IV only
• E)II, III, and IV only

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Definitions:

Average Total Costs

The sum of all production costs divided by the quantity of output produced, representing the per-unit cost of production.

Average Variable Cost

The total variable costs (costs that change with output level) of production divided by the quantity of output produced.

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of goods or services produced, such as rent, salaries, and insurance premiums.

Variable Cost

Costs that vary directly with the level of production or sales, such as raw materials and labor expenses.