If the Statement of Sources and Uses of Cash shows a decrease in cash balance, which of the following changes might have eliminated that decrease?

Question

Quizplus · Accepted Answer

An increase in accounts payable means that the company has not paid all of its bills yet, thus retaining cash in the business. This could offset the decrease in cash balance shown in the Statement of Sources and Uses of Cash. Increases in cash dividends paid, accounts receivable, and inventories would all reduce the cash balance further.

If the Statement of Sources and Uses of Cash Shows