If accounts receivable have a positive effect on cash flow that is because accounts receivable increased during the year.

Question

Quizplus · Accepted Answer

Accounts receivable do not necessarily have a positive effect on cash flow. While an increase in accounts receivable may be a sign of sales growth, it can also mean that customers are not paying their invoices on time, which can cause cash flow issues for the company.

If Accounts Receivable Have a Positive Effect on Cash Flow