A decrease in accounts receivable is a source of cash.

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used, but not yet paid for.

Source of Cash

Various origins from where a company or individual receives cash, including operations, financing activities, investments, and external funding.

Study the repercussions of multiple financial undertakings on a business entity's cash circulation.

Verified Answer

Final Answer :

True

Explanation :

A decrease in accounts receivable indicates that a company is collecting cash from its customers, thus increasing its cash balance.

Learning Objectives

Study the repercussions of multiple financial undertakings on a business entity's cash circulation.