Question

While calculating cash flow from operating activities, which will be added?

विकल्प

• Increase in inventory

• Increase in creditors

• Decrease in bills payable

• Increase in trade receivables

Answer 1

Increase in creditors

Explanation:

An increase in creditors indicates that the business has saved money by delaying payments to suppliers. Given its status as a cash source, cash flow from operational activities includes it.