When Preparing a Statement of Cash Flows, a Decrease in Accounts

question 63

Short Answer

When preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the following adjustments in determining cash flow from operating activities?

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Definitions:

High Freight Rates

The increased costs associated with transporting goods, often due to factors like fuel prices, demand, regulatory fees, and infrastructure issues, impacting economies and consumers.

Excessive Interest Rates

Interest rates that are significantly higher than what would be considered reasonable or fair, often associated with predatory lending practices.

Low Tariffs

Refers to relatively minimal taxes or duties placed on the import or export of goods which can encourage free trade and lower the cost of imported goods.

Public Ownership

The holding of assets by the government or community as a whole, rather than by private individuals or companies, often found in utilities, transport infrastructures, or education systems.