Which of the Following Is a Use of Cash

question 83

Multiple Choice

Which of the following is a use of cash?

• A)Exchanging old auto for new auto and taking a note for balance due
• B)Paying employees monthly payroll
• C)Issuing long-term bonds
• D)All of these answer choices uses of cash

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Definitions:

Cost Savings

The reduction in expenses achieved through efficient management, elimination of waste, or other means, contributing to improved financial performance.

Profit Sharing

A compensation strategy where employees receive a portion of the company's profits, aligning their interests with the financial success of the business.

Gain-Sharing

A plan that allows employees to share in cost savings or productivity gains realized by their efforts.

Net Profits

The financial gain attained by a business after subtracting all operating expenses, interest, taxes, and any other necessary expenditures from its total revenue.