Which of the following is a use of cash?
A) An increase in accounts payable.
B) A reduction in inventory.
C) An increase in retained earnings.
D) An increase in notes payable.
E) An increase in accounts receivable.

Question

Quizplus · Accepted Answer

An increase in accounts receivable represents a use of cash because it indicates that sales have been made on credit, and cash has not yet been received.

Which of the Following Is a Use of Cash