Which of the following is a source of cash that would appear on the statement of...

Which of the following is a source of cash that would appear on the statement of cash flows?

decrease in notes payable

increase in gross fixed assets

increase in accrued expenses

Solutions

Expert Solution

The correct option is increase in accrued expenses.

A decrease in current assets (such as accounts receivable,inventory etc) is reported as a cash inflow for the period in the operating activities section of the cash flow statement and vice-versa.Similarly,a decrease in current liabilities(such as accounts payable,creditors) is an outflow of cash and hence would be reported as cash outflow in the cash flow from operating activities for the period and vice versa.

jeff jeffy answered 1 year ago

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