When Calculating the Net Cash Flows from Operating Activities, an Increase

question 45

True/False

When calculating the net cash flows from operating activities, an increase in accounts receivables needs to be subtracted from the profit figure.

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Definitions:

Prospective Buyer

An individual or entity showing interest in purchasing a product or service, often in the preliminary stages of the buying process.

Direct Marketing

A form of advertising where companies communicate directly with customers through a variety of media including cell phone text messages, email, websites, online adverts, database marketing, fliers, and catalog distribution.

Sales Promotion

Marketing activities that aim to increase sales in the short-term by offering incentives or discounts to consumers or resellers.