Depreciation charges are reported as use of cash

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Which of the following statements is CORRECT?

a. In the statement of cash flows, depreciation charges are reported as a use of cash.

b. In the statement of cash flows, a decrease in inventories is reported as a use of cash.

c. In the statement of cash flows, a decrease in accounts receivable is reported as a use of cash.

d. In the statement of cash flows, a decrease in accounts payable is reported as a use of cash.

e. Dividends do not show up in the statement of cash flows because dividends are considered to be a financing activity, not an operating activity.

Reference no: EM131575739

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