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Homework answers / question archive / Cash is decreased when: a

Cash is decreased when: a

Accounting

Cash is decreased when:

a. new debt is issued to purchase holiday merchandise

b. a dividend is paid

c. a short-term loan is used to purchase fixed assets

d. sales are made on credit

e. new debt is assumed

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The correct answer is option (b).

Cash is decreased when a dividend is paid.

Explanation: Cash is decreased when a dividend is paid as the dividend is needed to pay in cash.

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