What was the greatest use of funds for Bo Knows Proﬁt Corp.?
A) Increase in accounts receivable.
B) Decrease in accounts payable.
C) Acquisition of more ﬁxed assets.
D) Dividends.
E) Sale of inventory.

Question

What was the greatest use of funds for Bo Knows Proﬁt Corp.?
A) Increase in accounts receivable. 
B) Decrease in accounts payable. 
C) Acquisition of more ﬁxed assets. 
D) Dividends. 
E) Sale of inventory.

Quizplus · Accepted Answer

The greatest use of funds for Bo Knows Profit Corp. was the acquisition of more fixed assets. This can be determined by comparing the two given financial statements and noticing the increase in property, plant, and equipment (a type of fixed asset) from $228,000 to $358,000. The other options do not show a significant increase in usage of funds.

What Was the Greatest Use of Funds for Bo Knows