An increase in a current liability account will be deducted from the net cash provided by operating activities.

Name: An increase in a current liability account will be deducted from the net cash provided by operating activities.
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

An increase in a current liability account (such as accounts payable) indicates that a company has incurred expenses for which it has not yet paid cash. This increases the net cash provided by operating activities because it represents cash that the company has not yet spent.

An Increase in a Current Liability Account Will Be Deducted