A large increase in accounts receivable may indicate that a company is having difficulties collecting its receivables.

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Accounts receivable represent money owed to a company by its customers. If there is a large increase in accounts receivable, it may indicate that customers are taking longer to pay or not paying at all. This can lead to cash flow problems and difficulties for the company in meeting its own financial obligations.

A Large Increase in Accounts Receivable May Indicate That a Company