An increase in accounts receivable in the year would increase the total cash receipts from customers reported on the cash flow statement using the direct method.

Name: An increase in accounts receivable in the year would increase the total cash receipts from customers reported on the cash flow statement using the direct method.
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Question

Quizplus · Accepted Answer

An increase in accounts receivable indicates that not all sales have been collected in cash, thus reducing the cash receipts from customers.

An Increase in Accounts Receivable in the Year Would Increase