Which One of the Following Is a Use of Cash

question 16

Multiple Choice

Which one of the following is a use of cash?

• A)increase in notes payable
• B)decrease in inventory
• C)increase in long-term debt
• D)decrease in accounts receivables
• E)decrease in common stock

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Definitions:

Direct Labor

The wages and salaries of employees who are directly involved in the production of goods or rendering of services.

Cash Collections

The process of gathering money that has been received from customers as payment for goods or services.

Cash Balance

The amount of cash or cash equivalents held by a company at a particular point in time.

Selling and Administrative Expense

Costs related to the selling of products and the administration of a business, not including production costs.