One Use of Cash Is Represented By

question 16

Multiple Choice

One use of cash is represented by:

• A)an increase in borrowing.
• B)an increase in operating cash flow.
• C)a decrease in accounts payable.
• D)an increase in notes payable.
• E)a decrease in inventory.

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Definitions:

Sales Decline

A decrease in the volume or value of sales over a specific period.

Margin of Safety

The extent by which sales can fall before reaching the break-even point.

Break-even Sales

The amount of revenue required to cover all fixed and variable expenses associated with producing and selling a product.

Dollars

A unit of currency used in various countries, including the United States, associated with financial transactions, savings, and debts.