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

Which one of the following is a source of cash?

A. increase in accounts receivable

B. decrease in notes payable

C. decrease in common stock

D. increase in accounts payable

E. increase in inventory

Expert Solution

Answer: Increase in accounts payable

Increase in accounts payable implies company is purchasing products or services on credit and hence is not paying cash. SO it is a source of cash.

All other options either require use of cash like retirement of notes payable, common stock redemption, increase in inventory or increase in accounts receivables.

jeff jeffy answered 2 years ago

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Question

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

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Expert Solution

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