Asked by Syecia Johnson on May 26, 2024
Verified
A change in Accounts Payable is considered an operating activity.
Accounts Payable
Liabilities of a business that are owed to creditors for goods or services purchased on credit.
Operating Activity
Transactions that relate to the primary business operations, such as revenue from sales and expenses for materials and labor.
- Evaluate the influence of adjustments in current assets and liabilities on the cash generated through operating activities.
Verified Answer
KM
Kesilolynnori MameaMay 27, 2024
Final Answer :
True
Explanation :
Changes in accounts payable are related to the day-to-day operations of a business, such as purchasing inventory or services on credit, and are therefore considered an operating activity in the context of cash flow.
Learning Objectives
- Evaluate the influence of adjustments in current assets and liabilities on the cash generated through operating activities.
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