American Bankers Association CTFA Exam - Topic 6 Question 96 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 96
Topic #: 6

[All CTFA Questions]

Uses of funds include a (an):

ADecrease in cash

BIncrease in any liability

CIncrease in fixed assets

DTax refund

Show Suggested Answer

Suggested Answer: A

by Mattie at Oct 28, 2025, 02:50 AM

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Leontine

5 months ago

True, but C is more about long-term benefits.

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Rickie

5 months ago

But what about A) Decrease in cash? That’s also a use of funds.

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Telma

5 months ago

I thought liabilities were a source of funds, not a use!

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Ira

5 months ago

Wait, how is a tax refund a use of funds?

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Malcolm

5 months ago

Totally agree with that!

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Pearly

5 months ago

C) Increase in fixed assets is a use of funds.

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Roosevelt

6 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?

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Brynn

6 months ago

I practiced a similar question, and I think liabilities increasing is more of a source of funds, so B) seems wrong.

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Linwood

6 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.

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Mozell

6 months ago

Haha, D. Tax refund. What kind of exam is this, a comedy routine?

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Brandee

6 months ago

D. Tax refund? Really? That's not a use of funds, that's a source of funds!

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Dalene

6 months ago

I'd go with C. Increasing fixed assets seems like a pretty common use of funds.

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Carin

7 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?

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Renato

7 months ago

I agree, Alex. Fixed assets are essential for growth.

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Ciara

7 months ago

I think it's C) Increase in fixed assets. It shows investment.

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Jules

7 months ago

A) Decrease in cash makes sense too.

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Ressie

8 months ago

A, B, and C all seem like valid uses of funds to me.

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Dominga

8 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.

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Antonio

8 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.

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Mozell

8 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.

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