Question

For the following transaction, determine whether cash flows from operating activities will increase, decrease, or remain the same:
(b) Paid an account payable in case

Answer 1

In case a company paid an account payable in case the cash flows from operating activities will decrease.

Cash flow from operating activities will decrease in case payment of an account payable is made in cash since payment is made in respect of accounts payable. As working cash flow starts off evolving with net profits, any adjustments in net earnings might affect cash going with the flow from working sports. If revenues decline or charges boom, with the ensuing component of lower net profits, this can result in a decrease in cash drift from running activities.

Accounts payable are quantities due to vendors or providers for goods or offerings obtained that have not been paid for. The sum of all notable amounts owed to providers is proven as the accounts payable balance on the business enterprise's balance sheet.

Accounts payable are bills that a corporation needs to pay. a few examples of money owed payable follow cleansing services, staff uniforms, and office supplies. The 3 steps to money owed payable are purchasing the order, receiving the order, and sending the vendor invoice.

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