Cash flow from operating activities is decreased by:
depreciation and amortization
a decrease in accounts receivable.
a decrease in inventory.
a decrease in accounts payable.
All of the above
Answer - a decrease in accounts payable
Reason - Cash Flow from Operating Activities = Net Income + Depreciation + Adjustments To Net Income + Changes In Accounts Receivables + Changes In Liabilities + Changes In Inventories + Changes In Other Operating Activities
To calculate cash flow from operating activities we add depreciation and amortisation so it increases cash flow from operating activities.
A decrease in account receivables and decrease in inventory implies cash inflow which again increases cash flow from Operating activities.
But, a decrease in accounts payables means cash out flow and thus it decreases cash flow from operating activities.
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Cash flow from operating activities is decreased by: depreciation and amortization a decrease in accounts receivable....
Complete the cash flow from Operating Activities
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