1. Which one of the following is a use of cash?
A. Selling inventory at cost
B. Paying a supplier for inventory you purchased last month
C. Borrowing money from a local bank
D. Collecting payment from a customer
E. Selling a fixed asset such as a piece of machinery
2. Which one of the following activities is a source of cash?
A. Decreasing long-term debt
B. Increasing inventory
C. Repurchasing shares of stock
D. Increasing fixed assets
E. Decreasing accounts receivable
3. Which one of the following is a use of cash?
A. Issuing new shares of stock
B. Increasing accounts payable
C. Decreasing inventory
D. Decreasing fixed assets
E. Increasing accounts receivable