Asked by
Kemuel Lindsey
on Dec 20, 2024Verified
Which of the following would cause a decrease in cash?
A) An increase in the Average Collection Period from 15 days to 30 days
B) Selling off fixed assets for more than book value
C) An increase in accrued salaries expense
D) Paying suppliers in 60 days versus 45 days
Average Collection Period
The average number of days it takes for a business to receive payments from its customers for invoices.
Accrued Salaries
Wages that have been earned by employees but have not yet been paid out.
Fixed Assets
Long-term tangible assets that are used in the operations of a business and are not intended to be sold within a year.
- Understand the impacts of financial decisions on cash flow.
Verified Answer
AB
Learning Objectives
- Understand the impacts of financial decisions on cash flow.