A decrease in accounts payable from $86,000 to $72,000 will be reported on the statement of cash flows as a:
A)$14,000 use of operating activity funds.
B)$14,000 source of operating activity funds.
C)$14,000 source of investing activity funds.
D)$14,000 use of investing activity funds.

Question

Quizplus · Accepted Answer

A decrease in accounts payable indicates that a company has paid down its liabilities, which means it has used cash in its operating activities. This is because accounts payable is related to the company's day-to-day operations.

A Decrease in Accounts Payable from $86,000 to $72,000 Will