Which of the following would be considered a use of cash?
A)Depreciation
B)An increase in working capital
C)Sale of bonds
D)An increase in wages payable

Question

Quizplus · Accepted Answer

An increase in working capital is considered a use of cash because it means that a company is investing more in its short-term assets than it is receiving from its short-term liabilities, which reduces the company's cash balance.

Which of the Following Would Be Considered a Use of Cash