Which of the following is considered a cash outflow?
A) an increase in prepaid expenses between two consecutive accounting periods
B) an increase in an equity account between two consecutive accounting periods
C) an increase in a liability account between two consecutive accounting periods
D) an increase in trade and other payables between two consecutive accounting periods

Question

Quizplus · Accepted Answer

An increase in trade and other payables between two consecutive accounting periods represents a cash outflow as it indicates an increase in the company's obligations to pay suppliers or other creditors.

Which of the Following Is Considered a Cash Outflow