An increase in accounts receivable balance provides an increase in cash flow.

Name: An increase in accounts receivable balance provides an increase in cash flow.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in accounts receivable balance indicates that the company has made sales but has not received payment for them yet. This means that there is a delayed cash inflow and therefore it does not provide an increase in cash flow in the short term.

An Increase in Accounts Receivable Balance Provides an Increase in Cash