Increases in cash stem from 1.increases in liabilities.
2)increases in stockholders' equity.
3)increases in noncash assets.
4)decreases in liabilities.
5)decreases in stockholders' equity.
6)decreases in noncash assets.
A)1,2,and 3
B)2,3,and 4
C)1,2,and 6
D)2,3,and 5
E)3,4,and 5

Question

Quizplus · Accepted Answer

Increases in cash can result from increases in liabilities (e.g., taking on new debt), increases in stockholders' equity (e.g., issuing new shares), and decreases in noncash assets (e.g., selling inventory for cash).

Increases in Cash Stem from 1.increases in Liabilities