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Increase in sales tax payable increases the cash because if at first place cash is paid then cash will be reduced but if payable is increasing it means cash is increasing as well and it will decrease when all sales tax payable will be paid.

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10y ago
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9y ago

Decrease in tax payable decreases the cash flow because when tax is actually paid cash goes out from business and that's why it causes the reduction of cash flow from business.

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9y ago

Decrease in notes payable reduces the cash flow because payment is made to creditors.

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10y ago

Decrease in marketable securities increases the cash inflow because when we sell marketable securities we receive cash in exchange of it that's why it increases the cash flow.

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9y ago

Decrease in tax payable decreases the cash flow because when tax is actually paid cash goes out from business and that's why it causes the reduction of cash flow from business.

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13y ago

decrease cash flow

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Q: Does an increase in sales tax payable increase or decrease cash flow?
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Related questions

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.


Does a decrease in accounts payable increase cash flow?

Decrease in accounts payable causes the decrease in cash flow because decrease in accounts payable means that creditors are paid of and hence cash is decreased when somebody paid.


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 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


Does a increase in salaries payable decrease cash?

Increase in salaries payable increases the cash account as cash is not paid and due to non payment of cash, cash account showing more balance then it would be if salaries paid already.


What affect does an increase or decrease in accounts payable have on the statement of cash flow?

It effects in working capital changes in cash flow


What causes accounts payable to increase or decrease?

When an item is purchased on credit accounts payable increases. For example if you purchase something for $250 on credit this is the entry to increase accounts payable. Purchases 250 Accounts Payable 250 When you pay for your purchases it will decrease accounts payable. Accounts Payable 250 Cash 250


Increase in accounts payable Statement of Cash Flows?

Increase in accounts payable means increase in cash as if cash was paid there was no increase in accounts payable but as no payment done it saves the cash and causes the increase in actual cash.


When using the indirect method how is the decrease in accounts payable shown on the statement of cash flows?

Decrease in accounts payable is shown as a decrease in cash under cash flows from operating activities because cash goes out when we pay the accounts payable.


Do increase of notes receivable increase or decrease cash flow?

Increase in notes receivable reduces the cash flow because if sales are made in cash then cash will immediately increase but if sales are made on credit it means company has not received the cash and that's why it reduces the cash.


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.