Which of the following would be considered a "use" of cash for purposes of constructing a statement of cash flows?
A) an increase in accounts payable.
B) an increase in prepaid expenses.
C) an increase in accrued liabilities.
D) an increase in accumulated depreciation.

Question

Quizplus · Accepted Answer

An increase in prepaid expenses represents a use of cash because it involves paying cash upfront for expenses that will be recognized in future periods.

Which of the Following Would Be Considered a "Use" of Cash