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Uses of funds include a (an):
Suggested Answer: A
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27 comments · newest first
LE
Leontine
8 months ago
True, but C is more about long-term benefits.
RI
Rickie
8 months ago
But what about A) Decrease in cash? That’s also a use of funds.
TE
Telma
8 months ago
I thought liabilities were a source of funds, not a use!
IR
Ira
8 months ago
Wait, how is a tax refund a use of funds?
MA
Malcolm
8 months ago
Totally agree with that!
PE
Pearly
8 months ago
C) Increase in fixed assets is a use of funds.
RO
Roosevelt
9 months ago
I’m confused about D) Tax refund. It seems like it could be a use of funds, but I thought refunds were more about getting money back?
BR
Brynn
9 months ago
I practiced a similar question, and I think liabilities increasing is more of a source of funds, so B) seems wrong.
LI
Linwood
9 months ago
I'm not entirely sure, but I feel like a decrease in cash is definitely a use of funds, so A) could be right.
MO
Mozell
9 months ago
Haha, D. Tax refund. What kind of exam is this, a comedy routine?
BR
Brandee
9 months ago
D. Tax refund? Really? That's not a use of funds, that's a source of funds!
DA
Dalene
9 months ago
I'd go with C. Increasing fixed assets seems like a pretty common use of funds.
CA
Carin
10 months ago
I think I remember that uses of funds usually mean something that costs money, so maybe it's C) Increase in fixed assets?
RE
Renato
10 months ago
I agree, Alex. Fixed assets are essential for growth.
CI
Ciara
10 months ago
I think it's C) Increase in fixed assets. It shows investment.
JU
Jules
10 months ago
A) Decrease in cash makes sense too.
RE
Ressie
11 months ago
A, B, and C all seem like valid uses of funds to me.
DO
Dominga
11 months ago
Ah, I see what they're getting at. Uses of funds are outflows of cash, so the right answer has to be either A, B, or C. A tax refund wouldn't be a use of funds, so I'll go with C.
AN
Antonio
11 months ago
This is a good test of my understanding of financial accounting concepts. I'll eliminate the options that don't fit the definition of uses of funds, then select the correct answer.
MO
Mozell
11 months ago
I'm a little unsure about this one. I know uses of funds are things that reduce cash, but I'm not totally clear on the other options. Maybe I should review my notes quickly before answering.
JE
Jerry
11 months ago
Okay, I know uses of funds are things that decrease cash or increase liabilities or fixed assets. I think the answer is C, increase in fixed assets.
NO
Noe
12 months ago
Hmm, this seems like a straightforward accounting question. I'll need to think through the definitions of each option carefully.
TH
Thaddeus
6 months ago
I’m leaning towards fixed assets as well.
LA
Latanya
7 months ago
Tax refunds can be tricky too.
LA
Laura
7 months ago
Fixed assets seem like a solid choice.
FL
Flo
7 months ago
Definitely! But what about liabilities?
LI
Lindsey
10 months ago
I think it's about cash flow.