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ASU Home My ASU Colleges & Schools Map& Organizations Help QUESTION 17 Which items below would result in net cash flow from operating activities being higher than net income? O Decrease in accounts payable and increase in prepaid expenses. O Decrease in accrued liabilities and increase in inventory. O Increase in accrued liabilities and increase in inventory. O Increase in accounts payable and decrease in accounts receivable. QUESTION 18 Which items below would result in net cash flow from operating activities being lower than net income? O Increase in accounts payable and increase in accounts receivable. O Decrease in inventory and increase in accounts receivable. O Decrease in accrued liabilities and increase in accounts receivable. O Depreciation expense and decrease in accrued liabilities. QUESTION 19 Click Save and Submit to save and submit. Click Save All Answers to sove all answers
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Answer #1
Q17.
Answer is Increase in Accounts payable and decrease in Accounts receivable.
Explanation:
Increase in Accounts payable means more funding taken, cash increase
Decreasse in Accounts receivable, payments made by AR, hence cash increase
Q18.
Answer is Decrease in Accrued liabilities and Increase in Accounts receivable
Explanation:
Decrease in Accrued liabilities means payment to them, hence cash decrease
Increase in Accounts receivable, means more credit sales blocked, hence decrease
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