Which One of the Following Is a Source of Cash

question 28

Multiple Choice

Which one of the following is a source of cash?

• A)A decrease in inventory
• B)An increase in fixed assets
• C)A decrease in long-term debt
• D)The payment of a cash dividend
• E)An increase in accounts receivable

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Definitions:

Insurance

A contractual arrangement where an insurer agrees to compensate the insured for specified loss, damage, illness, or death in return for payment of a premium.

Freight Charges

Costs associated with transporting goods from one place to another.

Service Potential

Service potential refers to the capacity of an asset to provide goods or services that contribute to the future income of an organization.

Office Equipment

Tangible, long-term assets used in the operation of a business, such as computers, printers, and furniture, facilitating daily work tasks.