Accounting · Cash Flow Statement
In a Cash Flow Statement, a decrease in the amount of prepaid expenses from the previous year is treated as a:
- 1Source of cash / Inflow of cash from operating activities✓
- 2Application of cash / Outflow of cash for investing activities
- 3Non-cash transaction with zero effect
- 4Financing activity cash outflow
Correct answer
Source of cash / Inflow of cash from operating activities
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