In using the statement of cash flows to obtain 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

Negative cash flows from investing activities are common in profitable, growing companies as they often invest in new assets, expansion, or acquisitions to support their growth, which leads to cash outflows in the investing section of the cash flow statement.

In Using the Statement of Cash Flows to Obtain an Understanding