An increasing accounts receivables balance is always a good sign as it means the company has more current assets and is more liquid.

Name: An increasing accounts receivables balance is always a good sign as it means the company has more current assets and is more liquid.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increasing accounts receivables balance can also indicate that customers are not paying their bills on time, which can lead to cash flow problems and potentially bad debt. Therefore, it is not always a good sign.

An Increasing Accounts Receivables Balance Is Always a Good Sign