Which of the Following Would Cause a Decrease in Cash

question 106

Multiple Choice

Which of the following would cause a decrease in cash?

• A)Lengthening the time it takes to collect receivables from 15 to 30 days
• B)Selling fixed assets for more than book value
• C)An increase in accrued salaries expense
• D)Paying suppliers in 60 days versus 45 days

Evaluate the consequences of risk and loss aversion in decision making.

Explain the concept of maintaining the status quo through decision-making tendencies.

Understand the sequence of events and historical context leading to the American Revolution, including key acts and responses.

Evaluate the justification and consequences of actions taken by the patriots during the buildup to the American Revolution.

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Definitions:

Accounts Payable Balance

The total amount of money that a company owes to its suppliers or creditors for items or services purchased on credit.

Sales

Revenue generated from goods or services sold by a company in a specific period.

COGS

Short for Cost of Goods Sold, it represents the direct costs attributable to the production of the goods sold by a company.

Factoring Costs

Expenses associated with selling accounts receivable to a third party, commonly referred to as a factor, to improve cash flow.