Which of the following would be considered a source of cash on the statement of cash flows?
A)Payments from customers
B)Purchase of equipment
C)Payment of accounts payable invoices
D)Payment of dividends to stockholders

Question

Quizplus · Accepted Answer

Payments from customers would be considered a source of cash because it is money coming into the company from sales. The other options listed would be considered uses of cash. B is the purchase of equipment, which is a form of investment, C is the payment of accounts payable invoices, which is an expense, and D is the payment of dividends to stockholders, which is a distribution of earnings to owners.

Which of the Following Would Be Considered a Source of Cash