Which one of the following is a use of cash?

A) Reduction in inventory.
B) Collection of an account receivable.
C) Reduction in accounts payable.
D) Sale of equipment.
E) Tax refund.

Accounts Payable

Liabilities owed by a business to its creditors for purchases or services rendered that are expected to be paid off within a year.

Inventory Reduction

A strategy to decrease the amount of inventory that a company holds in order to improve cash flow or reduce storage costs.

Tax Refund

The amount of money returned to a taxpayer by the government when the taxpayer's paid taxes exceed their tax liability for a given year.