Which of the following would increase cash from operating activities?
A)Increasing accounts receivable.
B)Increasing inventories.
C)Decreasing accounts payable.
D)Decreasing accounts receivable.

Question

Quizplus · Accepted Answer

Decreasing accounts receivable would increase cash from operating activities as it means that more customers are paying their outstanding debts, thereby increasing cash flow. Increasing accounts receivable or inventories would tie up cash, and decreasing accounts payable would mean paying off debts, reducing cash flow.

Which of the Following Would Increase Cash from Operating Activities