For each of the following operating activities, select whether it is a source of cash, a use of cash or neither under the indirect method.
-increase in Accounts Receivable
A)source
B)use
C)neither

Question

Quizplus · Accepted Answer

An increase in Accounts Receivable is considered a use of cash under the indirect method because it represents sales that have not yet been collected in cash, thus reducing the cash flow from operating activities.

For Each of the Following Operating Activities, Select Whether It