According to the Statement of Cash Flows,a decrease in accounts receivable will _____ the cash flow from _____ activities.
A)decrease; operating
B)decrease; financing
C)increase; operating
D)increase; financing
E)increase; investment

Question

Quizplus · Accepted Answer

A decrease in accounts receivable is considered a positive adjustment in the operating activities section of the cash flow statement because it represents cash inflow that was previously recorded as revenue but not yet received.

According to the Statement of Cash Flows,a Decrease in Accounts