Which of the following are considered a source of cash?
A) Common stock decreases.
B) Accounts payable increase.
C) Accounts receivable increase.
D) Inventory increases.
E) Expenses increase.

Question

Quizplus · Accepted Answer

An increase in accounts payable means that a company is paying off its suppliers or creditors at a slower rate than it is purchasing goods or services, effectively using the suppliers' money to finance its operations in the short term. This delay in payment represents a source of cash because the company retains cash longer before it has to pay out to suppliers.

Which of the Following Are Considered a Source of Cash