Which of the following below 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 six-month note increases cash as it brings in new money to the company.

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

B) Acquisition of treasury stock typically involves using cash to buy back company stock, which reduces cash rather than increasing it.

D) Declaring a cash dividend reduces the amount of cash available to the company and does not increase it.

Which of the Following Below Increases Cash