Which of the Following Transactions Will Result in a Decrease

question 42

Multiple Choice

Which of the following transactions will result in a decrease in cash flow from operations?

• A) Increase in accounts receivable
• B) Decrease in inventories
• C) Decrease in taxes payable
• D) Decrease in bonds outstanding

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Definitions:

AASB 116

Refers to the Australian Accounting Standards Board's standard on Property, Plant, and Equipment, outlining the accounting treatment for these assets.

AASB 141

An accounting standard issued by the Australian Accounting Standards Board that deals with the agricultural sector, specifically the accounting for agricultural activity.

IAS 16

An International Accounting Standard outlining the accounting treatments for property, plant, and equipment, including its recognition and measurement.

IAS 41

A global accounting guideline focused on managing financial records for farming activities, specifically regarding the conversion of biological assets, such as live plants and animals, into farm products.