Which one of these activities represents a source of cash?
A) Increasing accounts receivable
B) Decreasing inventory
C) Increasing fixed assets
D) Decreasing accounts payable
E) Decreasing common stock

Question

Quizplus · Accepted Answer

Decreasing inventory is a source of cash because it typically means that a company is selling its inventory and converting it into cash, thus increasing the company's cash flow.

Which One of These Activities Represents a Source of Cash