Which of the following is considered a cash outflow?
A) a decrease in prepaid expenses
B) an increase in long-term debt
C) an increase in accounts payable
D) an increase in inventory

Question

Quizplus · Accepted Answer

An increase in inventory is considered a cash outflow because it represents money spent by the company to purchase more goods or materials, thus reducing the company's cash balance.

Which of the Following Is Considered a Cash Outflow