Which of the following is considered a use of cash?

Question

Quizplus · Accepted Answer

Increase in net working capital is considered a use of cash. This is because an increase in net working capital means that more cash is being tied up in operations, such as inventory, accounts receivable, and prepaid expenses. A decrease in net working capital would be a source of cash, as it would free up cash that was previously tied up. Amortization and depreciation are non-cash expenses that do not affect cash flow.

Which of the Following Is Considered a Use of Cash