An increase in a company's trade and other payables is considered a cash outflow and presented in the statement of cash flows under the heading "financing activities".

Question

Quizplus · Accepted Answer

An increase in a company's trade and other payables is considered a cash inflow (because it means the company is delaying payments to suppliers or creditors, thus retaining cash) and is presented in the statement of cash flows under the heading "operating activities," not "financing activities."

An Increase in a Company's Trade and Other Payables Is