Changes in current assets are used in determining net cash flows from operating activities.

Name: Changes in current assets are used in determining net cash flows from operating activities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Changes in current assets such as accounts receivable, inventory, and prepaid expenses impact the cash flow from operating activities. An increase in these assets represents a use of cash, while a decrease represents a source of cash in the operating activity section of the cash flow statement.

Changes in Current Assets Are Used in Determining Net Cash