The cash flow from operating activities decreases when
A)fixed assets are sold.
B)interest expense increases.
C)dividends increase.
D)depreciation increases.
E)accounts receivables decrease.

Question

Quizplus · Accepted Answer

Interest expense increases lead to a decrease in cash flow from operating activities because the higher interest expense reduces net income, which is a component of cash flow from operating activities.

The Cash Flow from Operating Activities Decreases When