QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

54. Assume U.S. GAAP (generally accepted accounting principles) applies unless

otherwise noted.

Which of the following is the simplest way for a company to increase its reported

operating cash flow?

A. Record sales on a bill-and-hold basis.

B. Slow down the rate of payment to suppliers.

C. Use a third party financial institution to pay suppliers.