Which one of the following is a use of cash?
A) Payment received from a customer on their account.
B) Sale of inventory.
C) Decrease in fixed assets.
D) Sale of common stock.
E) Payment to a supplier.

Question

Quizplus · Accepted Answer

Payments to suppliers are considered a use of cash because they represent cash flowing out of the business to cover the cost of goods or services purchased from the suppliers.

Which One of the Following Is a Use of Cash