​Which of the Following Would Be Classified as a Use

question 9

Multiple Choice

​Which of the following would be classified as a use of cash?

• A)An increase in depreciation.
• B)A decrease in accounts receivable.
• C)A decrease in accruals.
• D)Both b & c
• E)All of the above

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Definitions:

Expense Account

An account where costs incurred by a business, like rent, utilities, and salaries, are recorded.

Intangible Asset

An asset that lacks physical substance but offers value to a business, such as trademarks, patents, and copyrights.

Mining Rights

Legal permissions granted to companies or individuals to extract minerals or other valuable materials from the earth.

Depletion Expense

An accounting concept used to allocate the cost associated with natural resource extraction over the period of their removal or sale.