A decrease in accounts receivable of $16,000 for the year
A)decreases cash flow from operating activities by $8,000.
B)increases cash flow from operating activities by $8,000.
C)decreases cash flow from operating activities by $16,000.
D)increases cash flow from operating activities by $16,000.

Question

Quizplus · Accepted Answer

A decrease in accounts receivable indicates that more cash has been collected from customers, thus increasing the cash flow from operating activities by the amount of the decrease, which is $16,000.

A Decrease in Accounts Receivable of $16,000 for the Year