Which of the following is not an indicator that operating activities cash flows might be increased through distortion or manipulation?
A)A significantly large increase in accounts payable.
B)A significantly large decrease in accounts receivable.
C)A significantly large increase in accrued liabilities.
D)Expensing expenditures that should be capitalizeD.

Question

Quizplus · Accepted Answer

Expensing expenditures that should be capitalized can lead to understating operating cash outflows in the current period, which artificially increases operating cash flows. A significant increase in accounts payable, a significant decrease in accounts receivable, or a significant increase in accrued liabilities could indicate manipulating operating cash flows through delaying payments.

Which of the Following Is Not an Indicator That Operating