Asked by beyonce logan on May 07, 2024

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A source of cash would be generated by which of the following?

A) An increase in accounts receivable
B) An increase in inventory
C) A decrease in accrued expenses
D) An increase in accounts payable

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded by a company, representing obligations that exist at the balance sheet date.

Accounts Payable

Liabilities of a business that represent its obligations to pay for goods or services it has received but not yet paid for.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

  • Learn about the mechanisms of cash sources and uses and their impact on a firm's liquidity.
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sannan karimMay 13, 2024
Final Answer :
D
Explanation :
An increase in accounts payable means that the company has received goods or services without paying for them yet, resulting in an increase in cash available.