According to the statement of cash flows, an increase in accounts receivable will _____ the cash flow from _____ activities.
A) decrease; operating
B) decrease; financing
C) increase; operating
D) increase; financing
E) decrease; investment

Question

Quizplus · Accepted Answer

An increase in accounts receivable indicates that a company has made sales on credit but has not yet received cash, which effectively reduces the cash inflow from operating activities.

According to the Statement of Cash Flows, an Increase in Accounts