Which of the Following Transactions Decrease Cash

question 88

Multiple Choice

Which of the following transactions decrease cash?
1) Reduce prepaid expenses
2) Increase treasury stock
3) Lend money to an employee
4) Recognize cost of goods sold
5) Reduce long-term or short-term debt

• A)1 and 4
• B)3 and 5
• C)1,3,and 5
• D)2,3,and 5
• E)1,2,3,4,and 5

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Definitions:

Rate of Return

The appreciation or depreciation in value of an investment over an agreed period, conveyed as a percentage of the investment's starting value.

Dividend Increase

An action taken by a company's board of directors to raise the amount paid out to shareholders in dividends.

Required Return

The smallest anticipated return that an investor looks to obtain by putting money into a certain asset, factoring in the risk entailed.

Annual Dividend

An annual dividend is the total amount of dividend payments a shareholder receives from a company in one financial year.