Showing a decrease in accounts receivable as an addition on the cash flow statement implies that a company can increase its cash by collecting its receivables.

Name: Showing a decrease in accounts receivable as an addition on the cash flow statement implies that a company can increase its cash by collecting its receivables.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because a decrease in accounts receivable indicates that the company is collecting cash from its customers, which increases its cash flow.

Showing a Decrease in Accounts Receivable as an Addition on the Cash