Which one of the following is a use of cash?
A)Selling goods from inventory
B)Sale of a marketable security held by the firm
C)Submitting taxes to the government
D)Obtainment of a long-term loan
E)Collection of a past-due accounts receivable

Question

Quizplus · Accepted Answer

Submitting taxes to the government requires cash payment. This is a clear use of cash. Selling goods from inventory and collection of a past-due accounts receivable results in cash inflows, and obtaining a long-term loan and sale of a marketable security held by the firm are not immediate uses of cash.

Which One of the Following Is a Use of Cash