Which of the Following Transactions Does NOT Decrease Cash

question 14

Multiple Choice

Which of the following transactions does NOT decrease cash?

• A)Treasury stock purchases
• B)Cash dividends
• C)Stock splits
• D)Stock retirements

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Definitions:

Expected Residual Value

The anticipated value of an asset at the end of its useful life, important in calculating depreciation and lease payments.

Lease Rate

The amount of money paid over a specified time period for the use of an asset or property, typically expressed as an annual amount or percentage.

Operating Leases

Provides for both financing and maintenance. Generally, the operating lease contract is written for a period considerably shorter than the expected life of the leased equipment and contains a cancellation clause; sometimes called a service lease.

Maintenance

Maintenance involves the actions taken to keep equipment, buildings, or software operating efficiently or to repair it to optimal functioning state.