Which One of the Following Is a Use of Cash

question 95

Multiple Choice

Which one of the following is a use of cash?

• A)Selling goods from inventory
• B)Sale of a marketable security held by the firm
• C)Submitting taxes to the government
• D)Obtainment of a long-term loan
• E)Collection of a past-due accounts receivable

Understand capitalization of costs associated with acquiring or constructing long-lived assets.

Identify costs included in land, land improvements, buildings, and machinery and equipment.

Differentiate between costs that are expensed and those that are capitalized in relation to long-lived assets.

Understand and identify various costs associated with long-lived assets.

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Definitions:

Unfavorable Conditions

Circumstances that are not conducive to success or are disadvantageous to achieving goals.

Wage

The fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee.

Firemen

Professionals dedicated to fighting fires, conducting rescue operations, and managing emergency situations that pose a threat to life, property, and the environment.

Riskier Conditions

Situations or environments that pose a higher likelihood of danger, harm, or loss, often requiring additional precautions or measures to ensure safety.