Increases to cash flows can be anticipated if which of the following occurs?
A)A receivables contract is denominated in an appreciating foreign currency.
B)Sales are less than anticipated.
C)Days in accounts receivable increase by 15 days.
D)none of the above

Question

Quizplus · Accepted Answer

If a receivables contract is denominated in an appreciating foreign currency, the amount of cash received when the contract is paid will be higher when converted back into the company's home currency, resulting in an increase in cash flows. B and C both represent situations that would decrease cash flows.

Increases to Cash Flows Can Be Anticipated If Which of the Following