Which of the following would indicate a cash disbursement?
A)Selling equipment at a loss.
B)A decrease in accounts receivable.
C)An increase in prepaid expenses.
D)A decrease in inventory.

Question

Quizplus · Accepted Answer

An increase in prepaid expenses indicates a cash disbursement because it means the company has paid cash upfront for expenses that will be incurred in the future.

Which of the Following Would Indicate a Cash Disbursement