Which of the following would be considered a source of cash on the statement of cash flows?
A)Purchase of equipment
B)Receipt of interest income
C)Payments of accounts payable invoices
D)Payment of dividends to stockholders

Question

Quizplus · Accepted Answer

Receipt of interest income is a source of cash as it represents an inflow of cash into the business. A source of cash would be any transaction that results in an increase in cash, such as the sale of assets, issuance of stock, or acquisition of loans. A purchase of equipment, payments of accounts payable invoices, and payment of dividends to stockholders are all uses of cash and therefore would not be considered a source of cash on the statement of cash flows.

Which of the Following Would Be Considered a Source of Cash