The adjustment for changes in operating working capital accounts depends in part on a firm's rate of growth.Some firms use suppliers or other creditors to finance these working capital needs, which are
A)classified as operating activities.
B)classified as financing activities.
C)classified as investing activities.
D)disclosed in a supplementary schedule or notes to the financial statements.
E)disclose such changes in managements' discussion and analysis.

Question

Quizplus · Accepted Answer

Changes in operating working capital accounts, such as accounts payable, are classified as operating activities in the cash flow statement because they are part of the day-to-day business operations.

The Adjustment for Changes in Operating Working Capital Accounts Depends