An increase in accounts receivable from last year's balance sheet to this year's balance sheet indicates that the business experienced a cash outflow.

Name: An increase in accounts receivable from last year's balance sheet to this year's balance sheet indicates that the business experienced a cash outflow.
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Question

Quizplus · Accepted Answer

An increase in accounts receivable means more sales were made on credit, which means cash has not yet been received, indicating a cash outflow.

An Increase in Accounts Receivable from Last Year's Balance Sheet