All of the following are outflows of cash EXCEPT
A) an increase in inventory.
B) a decrease in accounts receivable.
C) an increase in accounts receivable.
D) a decrease in notes payable.

Question

Quizplus · Accepted Answer

An increase in inventory (choice A), an increase in accounts receivable (choice C), and a decrease in notes payable (choice D) are all examples of outflows of cash. However, a decrease in accounts receivable (choice B) is an inflow of cash because it means that the company is collecting money from their customers, reducing the amount of money owed to them.

All of the Following Are Outflows of Cash EXCEPT