When a firm pays off a loan using cash,the source of funds is the decrease in the asset account,cash,while the use of funds involves a decrease in a liability account,debt.

Name: When a firm pays off a loan using cash,the source of funds is the decrease in the asset account,cash,while the use of funds involves a decrease in a liability account,debt.
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This is because the cash is used to decrease the liability of debt, which shows up as a decrease in the debt account on the firm's balance sheet.

When a Firm Pays Off a Loan Using Cash,the Source