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Why Is a Decrease in Accounts Receivable Added to Net

Question 62

Multiple Choice

Why is a decrease in accounts receivable added to net income when determining cash
Provided by operating activities?


A) Cash collections from customers were greater than the sales generated.
B) Cash collections increased due to an increase in sales.
C) Cash collections decreased due to a decline in sales.
D) Cash collections from customers were less than the sales reported.

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