In the statement of cash flows,an increase in a current liability will appear as an increase in the Financing category.

Question

Quizplus · Accepted Answer

An increase in a current liability will appear as a decrease in the Operating category in the statement of cash flows. This is because an increase in current liabilities indicates an increase in payments that the company owes for expenses such as salaries, taxes, or accounts payable, which are recorded as cash outflows in the operating activities section.

In the Statement of Cash Flows,an Increase in a Current