Asked by
Celine Luttik
on Nov 15, 2024
Verified
Of the following, which has a positive effect on the computation of cash flow from investing using the indirect method?
A) Decrease in Inventory
B) Increase in Accounts Payable
C) Purchase of Equipment
D) Sale of Equipment
Cash Flow
The total amount of money being transferred into and out of a business, especially affecting liquidity.
Investing Activities
Transactions involving the purchase and sale of long-term assets and investments.
Accounts Payable
Money owed by a business to its suppliers shown as a liability on a company's balance sheet.
- Understand the differences in cash movements within the realms of operating, investing, and financing functions.
Verified Answer
CW
Learning Objectives
- Understand the differences in cash movements within the realms of operating, investing, and financing functions.