Asked by rejina kristin on Jul 05, 2024
Verified
In a recent year,The Walt Disney Company reported the following increases and decreases in current assets and current liabilities.
Identify whether each of these increases or decreases caused cash to increase or decrease.Enter an "I" if the change in the account balance caused an increase in cash flow or enter a "D" if the change in the account balance caused a decrease in cash flow.
Current Assets
Assets that are expected to be converted into cash, sold, or used up within one year or within the operating cycle, whichever is longer.
Current Liabilities
Current liabilities are financial obligations that a company expects to pay within one year, such as accounts payable, short-term loans, and taxes owed.
Cash Flow
Cash flow is the net amount of cash and cash equivalents being transferred into and out of a business, indicating the organization's liquidity position over a period.
- Understand how changes in current asset and current liability accounts impact cash flow.
Verified Answer
JC
Learning Objectives
- Understand how changes in current asset and current liability accounts impact cash flow.