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Which of the Following Would Result in an Increase in Cash

Question 307

Multiple Choice

Which of the following would result in an increase in cash?


A) Inventory is purchased using funds from a new equity issue.
B) A long-term bank loan is obtained.
C) Existing accounts receivable are written off, that is, considered uncollectible.
D) A firm reduces its inventory loan at the bank in order to free up a trust receipt.
E) Accrued liabilities decrease.

Correct Answer:

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