According to the statement of cash ﬂows, an increase in accounts receivable will _____ the cash ﬂow from _____ activities.
A) decrease; operating
B) decrease; ﬁnancing
C) increase; operating
D) increase; ﬁnancing
E) decrease; investment

Question

Quizplus · Accepted Answer

An increase in accounts receivable represents an increase in cash that is tied up in the business and has not yet been collected. Therefore, this will decrease the cash flow from operating activities.

According to the Statement of Cash ﬂOws, an Increase in Accounts