Which of the statements below is TRUE? A) The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project. B) An increase in working capital can be brought about by an increase in inventory. C) Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases. D) Decreases in accounts payable constitute a source of cash flow because you are using your suppliers to help finance your business operations.

Which of the statements below is TRUE? A) The increase in working capital accounts necessary to support a project also provides for cost increases at the end of the project. B) An increase in working capital can be brought about by an increase in inventory. C) Decreases in accounts receivables constitute a use of cash flow because you are helping your customers finance their purchases. D) Decreases in accounts payable constitute a source of cash flow because you are using your suppliers to help finance your business operations.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 10MCQ: An increase in inventories is deducted from net income to arrive at operating cash flow because a....

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