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

question 18

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:

Office Equipment

Tangible items used in an office environment for performing business operations, such as computers, printers, and furniture.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.

Accumulated Depletion

The total amount deducted from the gross value of an asset to account for the extraction of natural resources over time.

Coal Mine

A physical location where coal is extracted from the earth.