The Decrease in Accounts Receivable Over a Period Results in A(n)__________

question 130

Short Answer

The decrease in accounts receivable over a period results in a(n)__________ to net income reported in the Operating Activities section of the statement of cash flows using the indirect method.

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Definitions:

Unit Variable Cost

The cost associated with producing one additional unit of a product, which varies directly with the level of production output.

Variable Expenses

Costs that vary directly and proportionately with the level of production activity or business volume.

Net Operating Income

The income derived from a firm's core business operations, indicating the financial health of the business's day-to-day activities.

Advertising Budget

The allocation of funds towards promotional activities intended to build brand awareness, increase product demand, or communicate information to consumers.