Asked by Elizabeth Offer on Jul 15, 2024
Verified
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
AE
Alexis EaveyJul 21, 2024
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.