Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:
Cash from operating activities in the cash flow statement of a company will decrease due to which reason?
Options:
Increase in Current Assets
Decrease in Current Liabilities
Both of these
None of these
Correct Answer:
Both of these
Explanation:
As operating cash flow beings with net income, any changes in net income would affect cash flow from operating activities. If revenues decline or costs increase, with the resulting factor of a decrease in net income, this will result in a decrease in cash flow from operating activities.