What Is the Impact on the Cash Flow Statement from a Decrease

question 171

Multiple Choice

What is the impact on the cash flow statement from a decrease in accounts receivable, assuming the indirect method is used?

• A) A decrease in the cash flow from operating activities
• B) An increase in the cash flow from operating activities
• C) An increase in the cash flow from financing activities
• D) None.A decrease in accounts receivable has an impact only if the direct method is used

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Definitions:

Performance Measurement

Performance measurement involves the evaluation of the effectiveness and efficiency of an individual, group, or organization's work activities and results.

Simple Ranking

Method of performance measurement that requires managers to rank employees in their group from the highest performer to the poorest performer.

Peer Feedback

The process of giving or receiving information about performance from one's work colleagues, intended to foster improvement and learning.

Performance Appraisal

A systematic evaluation of an employee's job performance and productivity in relation to certain pre-established criteria and organizational objectives.