Practicing Success
Which of the following will increase the cash flow from operations? |
Increase in Creditors Decrease in Debtors Decrease in Prepaid Expenses All of the above |
All of the above |
The correct answer is option 4- All of the above. If the balance of a current liability increases, or the balance of a current asset decreases, Cash flow from operations will increase. If the balance of a liability decreases and the balance of current assets increases, cash flow from operations will decrease.
So, All of these will increase the cash flow from operations. |