Explanation

Management can inflate operating cash flows through:

• Option C: Reclassifying interest paid from financing to operating - This directly moves cash outflows from financing activities to operating activities, artificially boosting operating cash flows.

• Option A: Decreasing accrued expenses - This would actually decrease operating cash flows since accrued expenses represent liabilities that, when paid, reduce cash.

• Option B: Decreasing accounts receivable - This would increase operating cash flows (as cash is collected), but this is a legitimate business activity rather than manipulation.

The most direct method for inflating operating cash flows is reclassifying cash flows between categories, particularly moving cash outflows from operating to financing/investing or moving cash inflows from financing/investing to operating.