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21 September, 13:26

The increase of Account Payable on the statement of cash flow shows

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  1. 21 September, 13:56
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    Answer

    Hello,

    It shows positive cash flow

    Explanation

    It shows a decrease in net income but increases the cash balance. This is due to the nature of accounts payable. When a firm purchases goods on account, it does not expend cash right way, thus accountants will see this activity as an increase to cash. An increase in accounts payable is listed as a single line for the statement of cash flows.

    Wish you Luck!
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