An Increase in Accounts Receivable and a Decrease in Accounts

question 21

True/False

An increase in accounts receivable and a decrease in accounts payable will reduce the amount of new external funds required.

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Definitions:

Shares

Units of ownership in a company or financial asset, providing a proportion of the profits and losses.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.

Financial Statements

Papers detailing a corporation's fiscal health through various financial records such as balance sheets, income statements, and cash flow reports.

Small Co.

A colloquial term generally referring to a small company or corporation with limited resources and market share.