Asked by Angela Pantoja on Jul 05, 2024
Verified
A decrease in accounts receivables is categorized as a use of funds.
Accounts Receivables
Assets of a business representing money owed by customers for goods or services that have been delivered but not yet paid for.
Use of Funds
An explanation of how money will be spent, typically within a business or project framework.
- Learn the consequences of modifications in operating, investing, and financing activities on cash flow.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
False
Explanation :
A decrease in accounts receivable is considered a source of funds because it indicates that cash has been collected from customers, thereby increasing the company's cash flow.
Learning Objectives
- Learn the consequences of modifications in operating, investing, and financing activities on cash flow.
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