Question

Which of the following would not be considered a use of cash?

1) Purchasing inventory
2) Paying off a loan
3) Receiving a cash payment from a customer
4) Depreciating an asset

Answer 1

Depreciating an asset would not be considered a use of cash.

Step-by-step explanation:

Out of the given options, depreciating an asset would not be considered a use of cash. Depreciation is an accounting concept that represents the gradual decrease in the value of an asset over time. It is a non-cash expense that is recorded on the income statement but does not involve the movement of actual cash.