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An increase in the accounts payable balance would appear in which of the following sections of the cash flow statement?

• Operating section

 

• Investing section

 

• Financing section

 

• It would not appear on the statement

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Question added by Shazia Anees , Assistant Manager Finance , Arham Trading Company
Date Posted: 2015/05/01
Imran Adwani
by Imran Adwani , Head of Internal Audit , Abdulla Bin Zayed Investment Group

Under operating activities (working capital changes) while preparing cash flow statement using indirect method.

Md. Moshiur Rahman Sumon
by Md. Moshiur Rahman Sumon , Assistant General Manager( Corporate Finance & Head of Internal Audit) , Progressive Life Insurance Company Limited

  • Operating Section is right answer.............

Farasat Ali
by Farasat Ali , Purchasing Operation Specialist (Zones PK) / Rebates Claim Administrator , Ovex Technologies / Zones PK

An increase in accounts payable appears in Operating section in Cash Flow with positive balance

Masood k Bakhsh
by Masood k Bakhsh , financial controller , Abu Al-Jadayel Saeed Muhammad Abdullah Industry Company أﺑﻮاﻟﺠﺪاﻳﻞ ﺳﻌﻴﺪ محمد ﻋﺒﺪﷲ شرﻛﺔ ﺼﻨﺎﻋﺔ

Operating Section:  increase is to be added and decrease is deducted from operating section

it appear under operating Section to determine Cash generated from operations

 

Arslan Ali Khan ali
by Arslan Ali Khan ali , Accounts and Finance Assistant , Vertex Electronic pvt limited

operating section because increase in payables  would effect the cash flow problems for company which is not payable in required time,hence effect operations of company

fahim ahmed
by fahim ahmed , Senior Manager , Pakistan Telecommunication Company Limited (Etisalat)

We will show accounts payable movement in te changes in working capital area under operating activities.

Muhammad Ramzan Tufail  ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Operating...................

Amrit Pal Singh
by Amrit Pal Singh , Lead - FInance , Paniit Alumni Reach for Jharkhand Foundation

Change in current liabilities wilk appear on operating section

Khaled Mahdy CMA CFM
by Khaled Mahdy CMA CFM , Finance Director , Misr Sinai for Supplies

increase in accounts payables should appear in operating section

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