The net cash provided by operating activities is affected by
A) a change in merchandise inventory.
B) a purchase of land for cash.
C) the issue of bonds payable for cash.
D) proceeds of cash investments by stockholders.

Question

Quizplus · Accepted Answer

The net cash provided by operating activities is affected by changes in inventory levels because inventory is considered a current asset and the purchase or sale of inventory will affect the cash flow for the business. Choices B, C, and D would affect investing or financing activities, not operating activities.

The Net Cash Provided by Operating Activities Is Affected by