Question

A cash disbursement may result in ___________.

• A. Reduction in liability
• B. Increase in other asset
• C. Reduction in one asset and increase in other asset
• D. All of the above

Answer 1

The correct option is D All of the above

Cash disbursement, also called cash payments, in accounting refer to payments made by a company during a specific period, such as quarter or year. It includes payments made by cash , but also cash equivalents like cheque or electronic fund transfer.