Which of the following is a source of cash?
A)an increase in an asset account ab.a decrease in an asset account
B)a decrease in a liability account
C)a decrease in an equity account
D)none of the above

Question

Quizplus · Accepted Answer

A decrease in a liability account represents a reduction in the amount owed to creditors, which increases the company's available cash. Options A and C involve changes in non-cash items (asset and equity accounts) and do not represent a direct source of cash. Option D is incorrect as there must be at least one correct choice.

Which of the Following Is a Source of Cash