Which is a use of cash?
A)an increase in inventory
B)a decrease in accounts receivable
C)decrease in equipment
D)an increase in accounts payable
E)an increase in bonds payable

Name: Which is a use of cash? A)an increase in inventory B)a decrease in accounts receivable C)decrease in equipment D)an increase in accounts payable E)an increase in bonds payable
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Question

Quizplus · Accepted Answer

An increase in inventory is a use of cash because purchasing more inventory requires spending cash, thereby reducing the company's cash balance.

Which Is a Use of Cash