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which of the following represents a source of cash? a. a decrease in accounts payable b....

which of the following represents a source of cash?
a. a decrease in accounts payable
b. a decrease in accounts receivable
c. payments dividends
d. an increase in inventories

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Answer #1

Option b is correct

a decrease in accounts receivable is a source of cash which means cash received from debtors which is a source of cash

The below are the applications of cash

> a decrease in accounts payable represents payment to creditors and application of cash

> Payment of dividends represents application of money and payment to shareholders

> an increase in inventories represents payment for inventory, increase in working capital and application of money

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