Asked by Lourie Peters on Jun 29, 2024
Verified
Increase in accounts receivable balance
A) Increase cash from operating activities
B) Decrease cash from operating activities
C) Increase cash from investing activities
D) Decrease cash from investing activities
E) Increase cash from financing activities
F) Decrease cash from financing activities
G) Noncash investing and financing supplement
Accounts Receivable Balance
The total amount of money due to a company for goods or services delivered or used but not yet paid for by customers.
Operating Activities
Activities that relate directly to the primary business operations of a company, such as selling goods and services.
- Appreciate the influence of fluctuations in current asset and liability balances on cash movements.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
B
Explanation :
An increase in accounts receivable means that the company has not received cash for goods or services it has provided, which reduces operating cash inflow.
Learning Objectives
- Appreciate the influence of fluctuations in current asset and liability balances on cash movements.