Asked by Bailey White on Jul 06, 2024
Verified
A DECREASE in Cash Flow from Operations could be caused by:
A) a decrease in land.
B) an increase in inventory.
C) a decrease in accruals.
D) Both b and c
E) All of the above
Cash Flow
The collective sum of money that moves through a business, significantly contributing to its capacity to manage cash flow needs.
Accruals
Accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.
Inventory
The merchandise or goods a company holds for sale to customers in the ordinary course of business.
- Distinguish among the myriad factors and actions affecting the statement of cash flows and achieve an understanding of how cash flows are managed.
Verified Answer
DP
DACZE ProductionJul 12, 2024
Final Answer :
D
Explanation :
An increase in inventory and a decrease in accruals both require cash outflows, which would decrease cash flow from operations. A decrease in land would not necessarily affect cash flow from operations.
Learning Objectives
- Distinguish among the myriad factors and actions affecting the statement of cash flows and achieve an understanding of how cash flows are managed.