Which of the following does not decrease the cash flow from operating activities?
A)The prepayment of an expense.
B)The purchase of operating equipment.
C)The payment of interest.
D)The prepayment of an expense,the purchase of operating equipment,and the payment of interest all decrease cash from operating activities.

Question

Quizplus · Accepted Answer

The purchase of operating equipment is considered an investing activity, not an operating activity. Therefore, it does not decrease the cash flow from operating activities.

Which of the Following Does Not Decrease the Cash Flow