Which of These Is a Reason Why a Cash Flow

question 4

Multiple Choice

Which of these is a reason why a cash flow statement could show a negative cash flow from operating activities even though the statement of comprehensive income showed a profit?

• A) an increase in the amount of inventory held
• B) an increase in depreciation charged
• C) a decrease in the amount owing by debtors
• D) an increase in the amount owing by creditors

---

Definitions:

Learning

A process that results in a relatively permanent change in behavior or knowledge, due to experience.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences through experience, study, or teaching.

Components

Fundamental parts or elements that make up a larger system or whole.

Existential Process

A concept related to existential psychology focusing on individuals' navigation and meaning-making in existence, including facing existential dilemmas or crises.