On the cash flow statement, buying inventory on account is not a use of cash.

Name: On the cash flow statement, buying inventory on account is not a use of cash.
Brand: Quizplus
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Quizplus · Accepted Answer

Buying inventory on account means the payment is deferred to a later date, so it does not result in an immediate use of cash. However, when the payment is made at a later date, it will show up as a use of cash on the cash flow statement.

On the Cash Flow Statement, Buying Inventory on Account Is