Which of the following transactions have a negative impact on cash?
A)A decrease in supplies on hand
B)Proceeds from selling equipment used in the business
C)A loss on selling equipment used in the business
D)Dividends declared and paid
E)An increase in income taxes payable

Question

Quizplus · Accepted Answer

Dividends declared and paid has a negative impact on cash. The other transactions all have a positive impact on cash.
Key Takeaway: A positive impact on cash cannot only be a source of cash, but an increase in cash or a positive amount on the statement of cash flows. A negative impact on cash cannot only be cash that is used, but a decrease in cash or a negative amount on the statement of cash flows.

Which of the Following Transactions Have a Negative Impact on Cash