Which of the Following Statements Is False

question 18

Multiple Choice

Which of the following statements is false?

• A) An increase in trade receivables is treated as an outflow of cash
• B) Interest paid is an outflow of cash
• C) An increase in trade payables is treated as an outflow of cash
• D) An increase in inventory is treated as an outflow of cash

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Definitions:

Down Payment

An initial payment made when purchasing a good or service, typically a percentage of the total price, with the remainder due later.

Equipment

Tangible items used in the operation or production process of a business.

Financial Statement

A documented summary detailing a company's business operations and financial health, usually encompassing the balance sheet, income statement, and statement of cash flows.

Total

The sum or aggregate amount resulting from the addition of individual items or elements in a set.