Which of the Following Is Not a Source of Cash

question 38

Multiple Choice

Which of the following is not a source of cash?

• A) Sale of equipment below book value at a loss
• B) Issuance of bonds payable below par value at a discount
• C) Collection of a long-term note receivable from a customer
• D) Declaration of a cash dividend to be paid in the next accounting period

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Definitions:

Market-determined Price

The price of a good or service as dictated by the forces of supply and demand in a competitive market, without external interventions.

Elastic

Describes a situation in which the demand or supply for a good is sensitive to changes in price.

Firm

A business organization, such as a corporation or partnership, that sells goods or services in exchange for revenue.

Variable Costs

Costs that vary directly with the level of output or production, such as materials and labor costs.