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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

Respuesta :

hamzatauseef

Answer:

B. Paying a supplier for inventory you purchased last month

Explanation:

Assuming cash payment was made. This is the only transaction that records an outflow of cash where as all the other bring in the cash as an inflow.

Borrowing will bring in money, selling inventory even at cost will bring in some cash, collecting payments or selling fixed assets will all bring in money rather than use cash.

Hope that helps.

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