An increase in a accounts receivable,all other things being equal,serves to increase cash flows.

Name: An increase in a accounts receivable,all other things being equal,serves to increase cash flows.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in accounts receivable represents money that is owed to a company but has not yet been collected. Therefore, it ties up cash and decreases cash flows in the short term. It only improves cash flows in the long term when the money is eventually collected.

An Increase in a Accounts Receivable,all Other Things Being Equal,serves