Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Struggling with Financial Accounting?

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Multiple Choice

Which one of the following is considered a use of cash in financial accounting?

Borrowing from a bank

Payment of dividends

Issuance of common stock

Sale of equipment

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Verified step by step guidance

Step 1: Understand the concept of 'use of cash' in financial accounting. A use of cash refers to any transaction where cash is spent or flows out of the business, reducing the cash balance.

Step 2: Analyze each option provided in the question to determine whether it represents a use of cash or a source of cash. Borrowing from a bank is a source of cash because it increases the cash balance through a loan.

Step 3: Evaluate the option 'Payment of dividends.' Dividends are payments made to shareholders, which involve cash flowing out of the business. This is considered a use of cash.

Step 4: Examine the option 'Issuance of common stock.' Issuing stock generates cash inflow from investors, making it a source of cash rather than a use of cash.

Step 5: Assess the option 'Sale of equipment.' Selling equipment results in cash inflow, which is a source of cash rather than a use of cash. Therefore, the correct answer is 'Payment of dividends,' as it represents a use of cash.