Asked by
erica galindo
on Nov 15, 2024Verified
Which of the following is considered a cash outflow?
A) Decrease in Accounts Payable
B) Decrease in Supplies
C) Decrease in Prepaid Expenses
D) Decrease in Accounts Receivable
Accounts Payable
An accounting entry that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.
Prepaid Expenses
Expenses paid in advance for goods or services to be received in the future, recorded as assets until they are consumed or the service is provided.
Supplies
One type of asset acquired by a firm; it has a much shorter life than equipment.
- Comprehend the cash inflows and outflows associated with operating, investing, and financing segments.
Verified Answer
MC
Learning Objectives
- Comprehend the cash inflows and outflows associated with operating, investing, and financing segments.