An increase in Accounts Payable would be reported in the statement of cash flows as:
A)an increase in the Operating section.
B)an increase in the Financing section.
C)a decrease in the Operating section.
D)an increase in the Investing section.

Question

Quizplus · Accepted Answer

An increase in Accounts Payable is a liability, which is a component of working capital. As such, it is reported in the Operating section of the statement of cash flows since it relates to cash flows from day-to-day operations.

An Increase in Accounts Payable Would Be Reported in the Statement