Increases in current liabilities cause operating cash flows to be lower than accrual-basis net income.

Name: Increases in current liabilities cause operating cash flows to be lower than accrual-basis net income.
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Question

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Increases in current liabilities typically increase operating cash flows because they represent cash inflows or deferred cash outflows, which can lead to higher cash flow compared to accrual-basis net income.

Increases in Current Liabilities Cause Operating Cash Flows to Be