Practicing Success
Cash from operating activities in the cash flow statement of a company will decrease due to which reason? |
Increase in Current Assets Decrease in Current Liabilities Both of these None of these |
Both of these |
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. |