Which of These Is a Reason Why a Statement of Cash

question 24

Multiple Choice

Which of these is a reason why a statement of cash flows 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)A decrease in the amount owing by debtors.
• C)An increase in the amount owing by creditors.
• D)An increase in depreciation charged.

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Definitions:

LMX Model

Leadership Member Exchange Model; a theory suggesting that leaders develop different relationships with each of their subordinates, ranging from high-quality to low-quality exchanges.

Bounded Rationality Model

An approach suggesting that decision-making is limited by the information available, cognitive limitations of individuals, and the finite amount of time they have to make decisions.

Political Model

A framework in organizational studies that examines the use of power and influence by individuals and groups within an organization.

Radio-Frequency Identification (RFID)

A technology that uses electromagnetic fields to automatically identify and track tags attached to objects, containing electronically-stored information.