Which of the following is a use of cash, all else the same?
A) Increasing accounts payable.
B) Factoring accounts receivable.
C) Reduction of inventory that results from increased sales.
D) Reduction of short-term loans.
E) Cancellation of the need for a compensating balance.

Question

Quizplus · Accepted Answer

Reduction of short-term loans is a use of cash because it involves paying down debt, which directly reduces the company's cash balance.

Which of the Following Is a Use of Cash, All