Asked by Soleil Castaneda on Jun 13, 2024
Verified
Which of the following are considered a use of cash?
A) Common stock increases.
B) Accounts payable decrease.
C) Accounts receivable decrease.
D) Inventory decreases.
E) Expenses decrease.
Use Of Cash
A summary of how a company's cash is being utilized in operations, investments, and financing activities.
Accounts Payable
Represents money owed by a company to its creditors for goods and services purchased on credit.
Accounts Receivable
Payments due to a business by its customers for products or services that have been dispatched or exploited, yet are still unpaid.
- Implement the notion of net working capital and comprehend its effect on a firm's liquidity.
Verified Answer
ZZ
Zhanghao ZhangJun 19, 2024
Final Answer :
B
Explanation :
When accounts payable decrease, it means a company is paying off its suppliers or creditors, which is a use of cash.
Learning Objectives
- Implement the notion of net working capital and comprehend its effect on a firm's liquidity.