An increase in a liability account represents a source of positive funds on the cash flow statement.

Name: An increase in a liability account represents a source of positive funds on the cash flow statement.
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An increase in a liability account means that more funds have been received or owed, which is a source of positive cash flow. This is because liabilities represent money that a company owes, and an increase in liabilities means the company has received cash or financing from another source.

An Increase in a Liability Account Represents a Source of Positive