Which one of the following is a source of cash? A) An increase in accounts receivable B) An increase in fixed assets C) A decrease in long-term debt D) The payment of a cash dividend E) An increase in accounts payable

E) An increase in accounts payable

Explanation:

The source of cash means that the cash balance is increased. So in the given question the increase in account payable is considered to be a source of cash as the cash balance is increased while the other transactions like increase in account receivable, increase in fixed assets, decrease in long term debt, payment of a cash dividend leads to decreased in cash balance