A decrease in accounts payable from $60,000 to $50,000 will be reflected on the statement of cash flows as a:
A) $10,000 source of operating activity funds.
B) $10,000 use of operating activity funds.
C) $10,000 source of investing activity funds.
D) $10,000 use of investing activity funds.

Question

Quizplus · Accepted Answer

A decrease in accounts payable indicates that the company paid off some of its outstanding debts. This is a use of operating activity funds because it directly affects the company's cash flows from operating activities.

A Decrease in Accounts Payable from $60,000 to $50,000 Will