A decrease in accounts receivable represents an increase in a company's cash flow from operating activities.

Question

Quizplus · Accepted Answer

A decrease in accounts receivable means that the company is collecting payments quicker, which results in an increase in cash flow from operating activities. When customers pay their outstanding debts, it is added to the company's cash balance, resulting in an increase in cash flow.

A Decrease in Accounts Receivable Represents an Increase in a Company's