In using the information on the statement of cash flows while obtaining an understanding of a profitable, growing company, which of the following would ordinarily be least surprising to an auditor?
A) Decreases in accounts payable.
B) Decreases in accounts receivable.
C) Negative cash flows from investing.
D) Negative operating cash flows.

Question

Quizplus · Accepted Answer

Growing companies often reinvest in their business, leading to negative cash flows from investing activities due to capital expenditures.

In Using the Information on the Statement of Cash Flows