wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Increase in creditors is in the cash flow statement.

A
added
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
deducted
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
multiplied
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
not treated
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A added
If the balance of a liability increases, cash flow from operations will increase, if the balance of a liability decreases, cash flow from operations will decrease, current liabilities would include short-term debt and accounts payable. So, the increase in creditors is added in the cash flow statement.

flag
Suggest Corrections
thumbs-up
1
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Indirect Method
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon