Which one of the following is a use of cash?
A) Decrease in inventory.
B) Increase in accounts payable.
C) Decrease in fixed assets.
D) Decrease in equity.
E) Increase in long-term debt.

Name: Which one of the following is a use of cash? A) Decrease in inventory. B) Increase in accounts payable. C) Decrease in fixed assets. D) Decrease in equity. E) Increase in long-term debt.
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Question

Quizplus · Accepted Answer

A decrease in equity represents a use of cash, as it indicates that cash has been used to buy back shares or pay dividends.

Which One of the Following Is a Use of Cash