When a net decrease in trade receivables for the period occurs,cash collected from customers exceeds revenue,and cash flows from operations increases.

Question

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A decrease in trade receivables means that less money is owed to the business from its customers. Cash collected from customers exceeding revenue implies that customers are paying their debts faster than the company is recognizing revenue from sales. This results in an increase in cash flow from operations as more cash is being generated from collections.

When a Net Decrease in Trade Receivables for the Period