Why Is a Decrease in Accounts Receivable Added to Net

question 26

Multiple Choice

Why is a decrease in accounts receivable added to net income when determining cash
Provided by operating activities?

• A)Cash collections from customers were greater than the sales generated.
• B)Cash collections increased due to an increase in sales.
• C)Cash collections decreased due to a decline in sales.
• D)Cash collections from customers were less than the sales reported.

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