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On the cash flow statement, buying inventory on account is not a use of cash. True or...

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Accounting

Onthe cash flow statement, buying inventory on account is not a useof cash. True or False

Most companies use the direct method to prepare the statementof cash flows. True or False

A decrease in accounts payable is added to net income whenusing the indirect method of calculating cash flows provided byoperating activities. True or False

Dividends declared is not a cash flow. True or False

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Part 1 The correct answer is True Explanation Buying inventory on cash account is not a use of cash as it does not lead to cash outflow Purchase of inventory on account does not    See Answer
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