Activities is source of cash

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Reference no: EM131921478

1. Which one of the following is a use of cash?

A. Selling inventory at cost

B. Paying a supplier for inventory you purchased last month

C. Borrowing money from a local bank

D. Collecting payment from a customer

E. Selling a fixed asset such as a piece of machinery

2. Which one of the following activities is a source of cash?

A. Decreasing long-term debt

B. Increasing inventory

C. Repurchasing shares of stock

D. Increasing fixed assets

E. Decreasing accounts receivable

3. Which one of the following is a use of cash?

A. Issuing new shares of stock

B. Increasing accounts payable

C. Decreasing inventory

D. Decreasing fixed assets

E. Increasing accounts receivable

Reference no: EM131921478

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