Which of the following is not a source of cash?
A) Sale of equipment below book value at a loss
B) Issuance of bonds payable below par value at a discount
C) Collection of a long-term note receivable from a customer
D) Declaration of a cash dividend to be paid in the next accounting period

Question

Quizplus · Accepted Answer

Declaration of a cash dividend to be paid in the next accounting period is not a source of cash because it represents a future obligation to pay out cash rather than an actual inflow of cash.

Which of the Following Is Not a Source of Cash