Asked by Kirsten Landsverk on Jun 13, 2024
Verified
Decrease in inventory
A) Operating activities
B) Financing activities
C) Investing activities
D) Schedule of noncash financing and investing
Inventory
The raw materials, work-in-progress products, and finished goods that a company holds with the intent to sell or produce goods.
Operating Activities
Business activities related directly to the operation of the company, such as selling products, manufacturing, and providing services.
- Comprehend how variations in accounts of current assets and liabilities affect cash flow.
Verified Answer
LM
Lissette MillaJun 16, 2024
Final Answer :
A
Explanation :
Decrease in inventory would be reported under Operating activities in the statement of cash flows as it is related to the company's primary operations.
Learning Objectives
- Comprehend how variations in accounts of current assets and liabilities affect cash flow.