If Accounts Receivable Are Increasing Faster Than Net Income, Other

question 54

Multiple Choice

If accounts receivable are increasing faster than net income, other things being equal, net cash flows from operating activities will:

• A) increase, so the Quality of Income Ratio will fall.
• B) decrease, so the Quality of Income Ratio will fall.
• C) increase, so the Quality of Income Ratio will rise.
• D) decrease, so the Quality of Income Ratio will rise.

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