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An increase in prepayment will decreases cashflow

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12y ago

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Does increase of inventory increase or decrease cash flow?

When adjusting your cash flow statement, you increase (add) a decrease of inventory and decrease (subtract) an increase of inventory


Do increase in accounts payable increase or decrease cash flow?

Increase in Accounts payable increases the cash flow because if we had paid accounts payable it will reduce our cash immediately but instead of paying cash we defferred the payment for future time and save the cash that's why it increases the cash flow. Following are simple rules to determine effect on cash flow increase in asset reduces the cash flow decrease in asset increase the cash flow increase in liability increase the cash flow decrease in liability decrease the cash flow


Does an increase in notes payable increase or decrease cash flow?

It increases cash flow because you receive cash.


Does an increase in wages payable increase or decrease cash flow?

Increase in wages payable will increase in cash flow because cash is not paid.


What is the effect on cash flow on increased trade receivables?

It has reverse effect on that and it will decrease your cash flow.


Do increases in inventory increase or decrease cash flow?

Increase in amount of inventory causes the decrease in cash flow of company as company pays the cash to acquire inventory and hence reduction in cash flow occurs.


Does an increase in cash go on the cash flow statement?

Yes all increase or decrease in cash goes to cash flow statement and are part of it.


Does increase in accruals increase or decrease cash flow?

An increase(+) in accruals increases(+) the cash provided by operating activities under the cash flow statement.


Do increases in accrued expenses increase or decrease cash flow?

Decrease


Do increase in investments decrease cash flow or decrease cash flow?

Increasing investments decreases cash flow because money must be spent on said investments.


What causes a decrease in cash flow?

Many things can cause a decrease in cash flow including decrease in sales, increase in expenses, not collecting accounts receivables timely, and increase in interest rates.


Does an increase in interest payable increase or decrease cash flow?

Increase in interest payable increases the cash flow of company as payment is not cleared when due and which causes temporary increase in company's cash flow