Question

Identify a SOURCE of cash:

(select only one alternative)

Group of answer choices

Long-term Debt is retired

Dividends are paid

Accounts Payable goes down

Accounts Receivable goes down

Inventory is purchased

Answer 1

Answer - Accounts Receivable goes down

Accounts receivable goes down when the receivables (or cash) is received and hence this is a source of cash.

Long term debt is retired implies cash or debt is paid. Hence, that is use of cash.

Dividends are paid. This is also a use of cash.

Accounts payable goes down implies payable were paid and hence is again a use of cash.

Inventory is purchased which implies use of cash.