Which one of the following is a source of cash?
A) Increase in accounts receivable
B) Decrease in common stock
C) Increase in fixed assets
D) Decrease in accounts payable
E) Decrease in inventory

Question

Quizplus · Accepted Answer

Decrease in inventory is a source of cash because it indicates that a company is selling its inventory without immediately replenishing it, which converts inventory into cash, improving the company's cash position.

Which One of the Following Is a Source of Cash