How Many of the Following Items Decrease Cash Flow in the Statement

question 15

Multiple Choice

How many of the following items decrease cash flow in the statement of cash flows? • Increase in accounts receivable
• Increase in notes payable
• Depreciation expense
• Increase in investments
• Decrease in accounts payable
• Decrease in prepaid expenses
• Dividend payment
• Increase in accrued expenses

• A) Two of these items decrease cash flow
• B) Three of these items decrease cash flow
• C) Four of these items decrease cash flow
• D) Five of these items decrease cash flow

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Definitions:

Motives

The underlying reasons or goals that drive individuals or entities to act in a certain way, influencing economic decisions and behaviors.

Transactions Demand

Transactions demand refers to the amount of money or liquidity that is needed by an economy to facilitate day-to-day transactions.

State Charters

State charters refer to authorization or licenses granted by state governments allowing entities, such as corporations or banks, to operate within a specific state.

Money Supply

The aggregate sum of funds available or in circulation within a nation.