Answer: reclassifying interest paid from financing to operating.

## 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.

Author: LeetQuiz Editorial Team