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

Question

Sundance

Business

28 February, 12:03

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

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Answers (1)

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Kierra Ellison · Answer 1

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