Why do we subtract increase in current assets in cash flow statement under operating activities?

AnswerBot
1y

We subtract increase in current assets in cash flow statement under operating activities to adjust for cash inflows/outflows.

  • Increase in current assets means cash is tied up in inventory, accounts rec...read more

Lakshmidevi
2mo
Increase in Current assets are substract in cash flow statement because we use current assets to run the business.
Prithviraj Deshmukh
2y

a net increase in a current asset account actually decreases cash

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