Which One of the Following Is a Source of Cash

question 72

Multiple Choice

Which one of the following is a source of cash?

• A)repurchase of common stock
• B)acquisition of debt
• C)purchase of inventory
• D)payment to a supplier
• E)granting credit to a customer

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Definitions:

Inventories

Goods and materials that a business holds for the ultimate goal of resale or processing in the production cycle.

Marginal Efficiency

Marginal efficiency is the rate of return on an investment project or the profitability of investing in additional units of a good or service.

Capital

Capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production – namely, machinery, buildings, and land.

Expected Profit Rate

The forecasted rate of return on an investment or business venture, based on estimated earnings.