Select all of the following that will have a negative effect on the firm" flows? (Assume other variables remain constant, no change in revenues, etc. O Increase in Inventory Decrease in Accounts Payable O Increase in Accounts Receivable O Increase in Working Capital Decrease in Accounts Receivable

Select all of the following that will have a negative effect on the firm" flows? (Assume other variables remain constant, no change in revenues, etc. O Increase in Inventory Decrease in Accounts Payable O Increase in Accounts Receivable O Increase in Working Capital Decrease in Accounts Receivable

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 20MCQ

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

Select all of the following that will have a negative effect on the firm's cash
flows?
(Assume other variables remain constant, no change in revenues, etc.)
O Increase in Inventory
Decrease in Accounts Payable
Increase in Accounts Receivable
Increase in Working Capital
Decrease in Accounts Receivable
Decrease in Inventory
Increase in Accounts Payable

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