Which of the following would cause a decrease in cash?
A)An increase in the Average Collection Period from 15 days to 30 days
B)Selling off fixed assets for more than book value
C)An increase in accrued salaries expense
D)Paying suppliers in 60 days versus 45 days

Question

Quizplus · Accepted Answer

An increase in the Average Collection Period means it takes longer to collect cash from customers, leading to a decrease in cash on hand.

Which of the Following Would Cause a Decrease in Cash