Which of the Following Are Sources of Cash

question 2

Multiple Choice

Which of the following are sources of cash?
I.decreasing accounts receivable
II.increasing inventory
III.increasing accounts payable
IV.increasing common stock

• A)II and IV only
• B)II and III only
• C)I,III and IV only
• D)I and III only
• E)I and IV only

---

Definitions:

Interrelationships

Mutual or reciprocal relations between components within a system, indicating how they influence or interact with each other.

Cost Method

An accounting method used for recording investments, where the investment is recorded at its acquisition cost without recognizing periodic income but dividends received are recorded as income.

Acquisition

The process of obtaining control of another company, either by purchasing its shares, assets, or both, with the aim of expanding or diversifying operations.