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
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.
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 : 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 =..........
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