Practicing Success
Which of the following will result in a decrease in cash flow from the operations of a company? |
Increase in Creditors Increase in Debtors Decrease in Debtors Decrease in Prepaid Expenses |
Increase in Debtors |
If balance of a current liability increases, or balance of current asset decreases cash flow from operations will increase. If balance of a liability decreases and balance of current assets increases, cash flow from operations will decrease. Thus, here debtors are increased which will make the cash flow from operations to decrease. |