An increase to Accounts Receivable results in what condition?
A) A negative cash effect
B) A positive cash effect
C) No cash effect
D) None of the above are correct.

Question

Quizplus · Accepted Answer

An increase in Accounts Receivable indicates that a company has made sales on credit, which does not immediately result in cash inflow. Therefore, it has a negative effect on cash since it represents revenue that has been earned but not yet received in cash.

An Increase to Accounts Receivable Results in What Condition