_____ usually represents a major ongoing use of cash.
A)Borrowing funds
B)Sales of existing noncurrent assets
C)Issuance of common shares
D)Acquisition of noncurrent assets, particularly property, plant, and equipment
E)All of the above are major ongoing uses of cash.

Question

Quizplus · Accepted Answer

The acquisition of noncurrent assets, particularly property, plant, and equipment, usually requires a significant amount of cash and is considered a major ongoing use of cash. Borrowing funds and issuance of common shares may provide cash inflows, while sales of existing noncurrent assets may provide cash outflows but are not typically considered ongoing uses of cash. Therefore, option D is the best choice.

_____ Usually Represents a Major Ongoing Use of Cash