Question : To Calculate Cash Flow from Operating Activities, which of the following will be deducted?
Option 1: Decrease in Inventories
Option 2: Increase in Trade Payables
Option 3: Decrease in Trade Payables
Option 4: Decrease in Trade Receivables

Question

Question : To Calculate Cash Flow from Operating Activities, which of the following will be deducted?

Option 1: Decrease in Inventories

Option 2: Increase in Trade Payables

Option 3: Decrease in Trade Payables

Option 4: Decrease in Trade Receivables

Team Careers360 · Accepted Answer

Correct Answer: Decrease in Trade Payables

Solution : If the amount owed to vendors or suppliers has been reduced, this indicates that money has really been paid to them, leaving the business with less cash. Because of this, a rise in accounts payable signals a decline in cash flow.

Hence the Correct answer is option 3.

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Question : To Calculate Cash Flow from Operating Activities, which of the following will be deducted?Option 1: Decrease in InventoriesOption 2: Increase in Trade PayablesOption 3: Decrease in Trade PayablesOption 4: Decrease in Trade Receivables

Related Questions

Question : To Calculate Cash Flow Operating Activities, which of the following will be deducted?

Question : What adjustments are required for a decrease or increase in Trade Payables/bills payable while calculating 'Cash flow from operating activities'?

Question : What adjustments are required for a decrease or increase in Trade Payables/bills payable while calculating 'Cash flow from operating activities'?

Question : Cash Flow from Operating Activities + Cash Flow from Investing Activities + Cash Flow from Financing Activities =

Question : Net Increase/Decrease in cash and cash equivalents + Cash and Cash equivalents at the beginning of the period =..........

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

Question : To Calculate Cash Flow from Operating Activities, which of the following will be deducted?
Option 1: Decrease in Inventories
Option 2: Increase in Trade Payables
Option 3: Decrease in Trade Payables
Option 4: Decrease in Trade Receivables

Question : Cash Flow from Operating Activities + Cash Flow from Investing Activities + Cash
Flow from Financing Activities =