Which of the following transactions decrease cash?
1)Purchase inventory from cash
2)Pay trade accounts payable
3)Accruing operating expenses
4)Purchase stock in R&D partner with cash
5)Charging depreciation
A)1,2,and 5
B)1,2,and 4
C)1,2,3,and 5
D)1,2,3,and 4
E)1,2,4,and 5

Question

Which of the following transactions decrease cash? 
1)Purchase inventory from cash
2)Pay trade accounts payable
3)Accruing operating expenses
4)Purchase stock in R&D partner with cash
5)Charging depreciation
A)1,2,and 5
B)1,2,and 4
C)1,2,3,and 5
D)1,2,3,and 4
E)1,2,4,and 5

Quizplus · Accepted Answer

Transactions that decrease cash include purchasing inventory with cash (1), paying off trade accounts payable (2), and purchasing stock in an R&D partner with cash (4). Accruing operating expenses (3) and charging depreciation (5) do not involve cash outflows.

Which of the Following Transactions Decrease Cash