Which of the Following Transactions Will Result in a Decrease

question 14

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) increase in taxes payable.
• D) decrease in bonds outstanding

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Definitions:

Payroll Taxes

Levies charged to both employers and workers, determined as a proportion of the wages that businesses distribute to their personnel.

Federal Government

The national government of a federated state, which holds the authority to govern at a national level as distinct from regional or local levels.

Average Tax Rate

The fraction of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Marginal Tax Rate

The rate at which the last dollar of a person's income is taxed, indicating how much tax will be paid on an additional dollar of income.