Which One of the Following Activities Is a Source of Cash

question 35

Multiple Choice

Which one of the following activities is a source of cash?

• A)decreasing accounts receivable
• B)decreasing long-term debt
• C)repurchasing shares of stock
• D)increasing fixed assets
• E)increasing inventory

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Definitions:

Annual Dividend

The total amount of dividends that a company pays out to its shareholders over a year.

Market Rate

The prevailing interest rate available in the marketplace on investments or loans.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating the stability and growth potential of the dividends over time.

Investor's Return

The profit or loss realized by an investor, typically reflected as a percentage of the investment's initial value.