Which of the Following Would Be Considered a Use of Cash

question 54

Multiple Choice

Which of the following would be considered a use of cash on the statement of cash flows?

• A)Purchase of equipment
• B)Sale of Dillard's stock held as an investment
• C)Issuance of corporate stock
• D)Receipt of interest on savings account

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Definitions:

Capital Expenditures Budget

A plan for a company’s spending on fixed assets, such as equipment or property, that will be used over a long period.

Sales Budget

A sales budget is an estimate of the amount of revenue a company expects to generate from sales during a specific period.

Budgeted Direct Materials Purchases

The estimated cost of raw materials a company plans to acquire for use in production during a specific period.

Materials Inventory

The cost of materials that have not yet entered into the manufacturing process.