QUESTION 25 Which of the following would be considered a sou

QUESTION 25 Which of the following would be considered a \'source\" of cash for purposes of constructing a statement of cash flows? O an increase in accounts payable. O dividends paid to the company\'s own shareholders. O a decrease in accrued liabilities. O an increase in accounts receivable.

Solution

Accounts payable is a current liability. If current liabilities increase, cash will increase and vice-versa. Current liabilities and cash has direct relationship.

Hence, correct option is “an increase in accounts payable”