Which of these is a use of cash? group of answer choices issuing new shares of stock decreasing accounts receivable decreasing inventory decreasing fixed assets decreasing accounts payable

Respuesta :

The use of cash is to decrease accounts payable.

Accounts payable (AP) is a financial word that refers to the money owing to vendors or suppliers for products or services acquired on credit. The amount of any and all outstanding payments owing by one organization to its suppliers is reported as the balance of accounts payable on the company's balance sheet, whilst the cash flow statement will show the growth or reduction in total AP from the previous quarter.

When an account receivable makes a payment to the firm for products or services purchased on credit, the account receivable decreases and the cash grows. As a result, declining account receivable is a source of cash.

Therefore, the answer is decrease accounts payable.

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