Which of the Following Transactions Decreases Cash

question 21

Multiple Choice

Which of the following transactions decreases cash?

• A) Charging depreciation.
• B) Accruing taxes.
• C) Purchasing equipment for cash.
• D) Purchasing goods on credit.

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Definitions:

Inventory Value

The total cost or market value of all the goods held by a company, intended for sale in the ordinary course of business.

Cost

The monetary value required to produce, acquire, or maintain a product or service.

Retail Values

The price at which goods and services are sold to consumers in a retail setting, often higher than wholesale prices.

Inventory Value

The sum of the market value or total cost of all products and goods that a company has in stock for the purpose of selling.