A company that has decreased its inventory between years will cause a decrease in cash ﬂow from operations.

Name: A company that has decreased its inventory between years will cause a decrease in cash ﬂow from operations.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

Decreasing inventory means less money is tied up in inventory, which should free up cash for other uses. As a result, it should increase cash flow from operations instead of decreasing it.

A Company That Has Decreased Its Inventory Between Years Will