_____ is the major operating activity that decreases cash.
A)Purchases of inventory on account
B)Equipment purchases
C)Payments for inventory purchases
D)Advance payments for rent

Question

Quizplus · Accepted Answer

Payments for inventory purchases are the major operating activity that decreases cash. When a company purchases inventory, they are using their cash to acquire new goods to sell, which leads to a reduction in their cash balance.

_____ Is the Major Operating Activity That Decreases Cash