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:

Observational Learning

The process of acquiring knowledge, skills, or behaviors by watching and imitating others.

Biomedical Therapy

Treatments for mental disorders that involve physiological interventions, such as medication, surgical methods, or other medical procedures, to alter an individual's brain chemistry or functioning.

Electroconvulsive Therapy

A medical treatment involving electrically induced seizures for therapeutic effect, primarily used in severe cases of depression.

Drug Therapy

The treatment of disease by administering pharmaceutical substances.