Which of the following is NOT a potential use of cash for a firm?
A)An increase in inventory
B)An increase in plant,property,or equipment
C)An increase in long-term debt
D)A decrease in accounts payable

Question

Quizplus · Accepted Answer

An increase in long-term debt is not a use of cash, as it represents a source of financing rather than a use of cash. A firm may use cash to increase inventory (A), plant, property, or equipment (B), or to decrease accounts payable (D).

Which of the Following Is NOT a Potential Use of Cash