Which One of the Following Is a Source of Cash

question 7

Multiple Choice

Which one of the following is a source of cash?

• A)an increase in trade receivables
• B)an increase in fixed assets
• C)a decrease in long-term debt
• D)the payment of a cash dividend
• E)an increase in trade payables

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Definitions:

Money Supply

The total amount of money—coins, currency, and bank deposits—circulating in an economy.

Money Multiplier

The ratio that measures the maximum amount of commercial bank money that can be created by a given unit of central bank money.

Fed

The Federal Reserve System, which is the central bank of the United States, responsible for monetary policy.

Bonds

Fixed-income investments representing loans made by an investor to a borrower, typically corporate or governmental, where the borrower agrees to pay back the borrowed funds with interest at a later date.