Which of the Following Would Be Considered a Use of Cash

question 44

Multiple Choice

Which of the following would be considered a use of cash?

• A) depreciation
• B) an increase in working capital
• C) sale of bonds
• D) an increase in wages payable

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Definitions:

Quarterly Dividends

Payments made by a corporation to its shareholders, usually on a quarterly basis, from its profits or reserves.

Capital Gains

The profit from the sale of assets or investments when the selling price exceeds the original purchase price.

Shares

Units of ownership interest in a corporation or financial asset, giving the shareholders a proportionate claim on the company’s earnings and assets.

Quarterly Dividends

Dividends paid by a corporation to its shareholders at the end of each quarter.