Generally,an increase in a current liability results in an increase in the Operating Activities category of the cash flow statement.

Question

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An increase in a current liability (such as accounts payable or accrued expenses) means that the company owes more money to its suppliers and other parties. This usually results in an outflow of cash (or decrease in cash balances) in the Operating Activities section of the cash flow statement, since these liabilities typically arise from day-to-day business operations.

Generally,an Increase in a Current Liability Results in an Increase