Which of the following transactions decrease cash?
1)Reduce prepaid expenses
2)Increase treasury stock
3)Lend money to an employee
4)Recognize cost of goods sold
5)Reduce long-term or short-term debt
A)1 and 4
B)3 and 5
C)1,3,and 5
D)2,3,and 5
E)1,2,3,4,and 5

Question

Which of the following transactions decrease cash? 
1)Reduce prepaid expenses
2)Increase treasury stock
3)Lend money to an employee
4)Recognize cost of goods sold
5)Reduce long-term or short-term debt
A)1 and 4
B)3 and 5
C)1,3,and 5
D)2,3,and 5
E)1,2,3,4,and 5

Quizplus · Accepted Answer

Transactions that decrease cash include increasing treasury stock (2) because it involves buying back shares, lending money to an employee (3) because it involves paying out cash, and reducing long-term or short-term debt (5) because it involves paying down debt obligations.

Which of the Following Transactions Decrease Cash