Which of the Following Are Uses of Cash

question 36

Multiple Choice

Which of the following are uses of cash?
I.collecting a receivable
II.increasing inventory
III.obtaining a bank loan
IV.paying a supplier for previous purchases

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

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Definitions:

Net Capital Loss

The result when the total capital losses from investments exceed the total capital gains.

Carried Forward

The process of taking unused tax credits or losses and applying them to offset tax liabilities in future periods.

Subchapter S Corporation

A form of corporation that meets specific Internal Revenue Code requirements, allowing it to be taxed as a pass-through entity, thereby avoiding double taxation on dividends.

Elects

The act of choosing or deciding on a particular option or course of action, often used in legal and financial contexts.