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 is postponing payments to its suppliers, which would free up cash in the short term and thereby eliminate the decrease in cash balance shown in the statement of sources and uses of cash. The other options would typically lead to a further decrease in cash balance, since paying out more cash for dividends, increasing accounts receivable, or building up inventories would all be cash outflows.

If the Statement of Sources and Uses of Cash Shows