Management has authorized the purchase of a large quantity of inventory for early December. The purchase will have credit terms of 2/10, n/30, and they will authorize payment by the discount date

How will this decision affect the period's cash flows from operations—indirect method?
A) It will increase this period's cash flows from operations.
B) It will decrease this period's cash flows from operations.
C) It will not affect this period's cash flows from operations.
D) This does not affect cash flows from operations.

Answer: B

Business

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