Which one of the following is a source of cash?an increase in fixed assetsan...

Which one of the following is a source of cash?

		an increase in fixed assets
		an increase in accounts payable
		a decrease in long-term debt
		the payment of a cash dividend
		an increase in accounts receivable

Expert Solution

The correct answer is option b) an increase in accounts payable

An increase in accounts payable indicates that the firm is delaying its payments to the suppliers. So, the company is holding on to the cash for a longer time period, which is a source of cash.

All other answer options are the use of cash.

jeff jeffy answered 2 years ago

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Which one of the following is a source of cash?an increase in fixed assetsan...

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