Which of the following would be considered a use of cash?
A) Accounts receivable increase.
B) Accounts payable increase.
C) Common stock increase.
D) Revenue increase.
E) Net ﬁxed assets decrease by the amount of depreciation.

Question

Quizplus · Accepted Answer

An increase in accounts receivable indicates that sales have been made on credit, which means cash has not yet been received, thus using cash.

Which of the Following Would Be Considered a Use of Cash