Which of the following increases cash?
A) depreciation expense
B) acquisition of treasury stock
C) borrowing money by issuing a six-month note
D) the declaration of a cash dividend

Question

Quizplus · Accepted Answer

Borrowing money by issuing a note increases the amount of cash the company has.

The other choices decrease cash.

A) Depreciation expense is a non-cash expense that reduces net income but does not affect cash.

B) Acquisition of treasury stock reduces the amount of cash the company has because it involves purchasing its own shares from the market.

D) The declaration of a cash dividend reduces the amount of cash the company has because it involves distributing cash to shareholders.

Which of the Following Increases Cash