Practicing Success
Which of the following is not a Cash Outflow from operating activity? |
Increase in Creditors Increase in Debtors Increase in Stock Increase in prepaid expenses |
Increase in Creditors |
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 creditors are increased which will make the cash flow from operations to increase leads to inflow of cash. |