Asked by Destiny Jones on Jul 21, 2024
Verified
Which of the following will result in an increase in cash to the firm?
A) dividends paid
B) a delay in collecting on accounts receivable
C) net new investments
D) an increase in accounts payable
Accounts Payable
Liabilities of a company or organization representing money owed to suppliers or creditors for goods and services received.
Dividends Paid
The portion of a company's earnings that is distributed to shareholders, typically in the form of cash payments or additional stock.
Net New Investments
This refers to the total amount of money invested in new asset purchases minus any sales of assets over a specific period, reflecting a company's growth investment activities.
- Perceive the significance of cash flow from assorted activities (operating, investing, financing) in supporting the longevity of an enterprise.
- Recognize the ethical considerations and financial implications of managerial decisions on cash flow and earnings.
Verified Answer
JS
Jaskaran SinghJul 26, 2024
Final Answer :
D
Explanation :
An increase in accounts payable means the firm is delaying payment to its creditors, which results in an increase in cash to the firm. A, B, and C all result in a decrease in cash to the firm.
Learning Objectives
- Perceive the significance of cash flow from assorted activities (operating, investing, financing) in supporting the longevity of an enterprise.
- Recognize the ethical considerations and financial implications of managerial decisions on cash flow and earnings.