Which one of the following is a source of cash? an increase in accounts receivable an...

Which one of the following is a source of cash?

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

Solutions

Expert Solution

Aswer Option an increase in accounts payable

Accounts Payable are the money that has to be received by the company i,e, it gives credit to the vendors. After certain period the money will be given back to the company which means more amount is generated to the company in the form of cash.

In case of payment of dividend, the cash go out, increase in fixed assets means we are buying the assets where cash flow is out and the same is applicable to the accounts receivable which means that the creditors are increased so that we are unable to generate money

jeff jeffy answered 1 year ago

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