Question

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

पर्याय

• Decrease in prepaid expenses

• Increase in trade payables

• Increase in trade receivables

• Decrease in trade receivables

Answer 1

Increase in trade receivables

Explanation:

When assessing cash flow from operating operations, an increase in trade receivables indicates that more sales are being made on credit rather than paid for with cash.