Question

Which of the following is not a factor in operating cash flow? A. Long-term debt B....

Which of the following is not a factor in operating cash flow?

A.

Long-term debt
B.

Depreciation expense
C.

Accounts Receivable
D.

Wages Payable
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Homework Answers

Answer #1

The operating cash flow is computed as shown below:

= Net income + depreciation - Increase in current assets + decrease in current assets + increase in current liabilities - decrease in current liabilities

So, in the above question since accounts receivable is a current asset and wages payable is a current liability, hence they both are factors in operating cash flow. Further as can be seen in the formula, the depreciation is also a factor in operating cash flow.

So, the correct answer is option A i.e. Long term debt.

Feel free to ask in case of any query relating to this question

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