What Is the Impact on the Cash Flow Statement from a Decrease

question 171

Multiple Choice

What is the impact on the cash flow statement from a decrease in accounts receivable, assuming the indirect method is used?

• A) A decrease in the cash flow from operating activities
• B) An increase in the cash flow from operating activities
• C) An increase in the cash flow from financing activities
• D) None.A decrease in accounts receivable has an impact only if the direct method is used

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Definitions:

Adler

Alfred Adler, an Austrian medical doctor and psychotherapist, known for his contributions to psychology especially the development of individual psychology.

Individual's

Pertaining to or characteristic of a single, particular person or thing.

Humanistic

A psychological perspective emphasizing personal growth, self-actualization, and the inherent goodness of people.

Functioning

The action of working or operating in a proper or intended manner, often used to refer to how well something performs its designated role.