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The Accounts Receivable balance has decreased during the year. How would this event affect the statement of cash flows operations section-indirect method?
Interest On Debt
The cost incurred by an entity for borrowing funds, which is paid as a fee over time to the lender.
Liquidity
The ease with which assets can be converted into cash, indicating the financial health and operational efficiency of a business.
Receivables Ratio
A financial metric used to assess how efficiently a company uses its assets, particularly measuring how many times a company collects its average receivables within a certain period.
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