Which of the Following Is Not a Use of Cash

question 20

Multiple Choice

Which of the following is not a use of cash?

• A)Purchasing supplies for cash
• B)Repayment of bond payable
• C)Paying dividends to stockholders
• D)Buying inventory on account

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Definitions:

Support Department Costs

Costs associated with the departments that provide essential services to other operational departments within a company but do not directly generate revenue.

Products

Products are goods or services that are created or provided by businesses and made available to consumers for purchase or consumption.

Plantwide Overhead

The total of all overhead costs for a manufacturing plant, which may be allocated to products based on a predefined rate or method.

Product Costs

Costs that are directly associated with the manufacturing of goods, including raw materials, labor, and overhead expenses.