Which of the Following Is a Source of Cash

question 9

Multiple Choice

Which of the following is a source of cash?

• A) an increase in accounts receivable
• B) a decrease in wages payable
• C) the acquisition of land
• D) an increase in the amount owed on a note payable
• E) the repurchase of outstanding shares of stock

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Definitions:

Future Value

The amount of money an investment is expected to grow to over a period of time, assuming a specific interest rate.

Rates of Return

The positive or negative financial outcome of an investment over an agreed-upon period, expressed as a percent of the investment's initial outlay.

Present Value

The now value of a sum of money to be received in the future or a series of financial inflows, accounting for a specific return rate.

Simple Interest

Simple interest is a method of calculating the interest charge on a loan or investment based on the original principal amount and not on accumulated interest.