Which of the following transactions will result in a decrease in cash flow from operations?
A) Increase in accounts receivable
B) Decrease in inventories
C) Decrease in taxes payable
D) Decrease in bonds outstanding

Question

Quizplus · Accepted Answer

An increase in accounts receivable means that cash has not yet been received for goods or services provided, resulting in a decrease in cash flow from operations.

B, C, and D all result in an increase in cash flow from operations. A decrease in inventories means that less money was spent on inventory, a decrease in taxes payable means that less money was paid in taxes, and a decrease in bonds outstanding means that less money was spent on interest payments.

Which of the Following Transactions Will Result in a Decrease