Which of the following is a use of cash?
A)Purchasing equipment for cash
B)Purchasing supplies on account
C)Declaring a stock dividend
D)All of these ans choices are uses of cash

Question

Quizplus · Accepted Answer

Purchasing equipment for cash is a use of cash as it involves giving up cash in exchange for an asset.

B is incorrect because purchasing supplies on account does not involve using cash immediately.

C is incorrect because declaring a stock dividend does not involve the use of cash, but rather the distribution of stock to shareholders.

D is incorrect because only option A is a use of cash, the other options do not involve the use of cash.

Which of the Following Is a Use of Cash