A decrease in receivables will mean that the cash flow from operations is higher than the profit figure.

Name: A decrease in receivables will mean that the cash flow from operations is higher than the profit figure.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Decrease in receivables means that the company is collecting cash from its customers at a faster rate which results in higher cash flow from operations, even if the profit figure remains the same.

A Decrease in Receivables Will Mean That the Cash Flow