Your accounts receivable increases from the prior year, what happens on the cash flow statement and in which section?

Question

1. Cash increases - Financing section

2. Cash decreases - Operating section

3. No change

4. Cash increases - Operating section

Abbas Bharmal CA Inter M com Looking for New · Answer

Option2 cash decreases - operating section.....

Shahbaz Hayder · Answer

2. Cash decreases - Operating section is the right answer.

Ajay Dutt · Answer

The answer is option2. Cash decreases operating section.

Saidul Alam · Answer

2. Cash decreases - Operating section...............................

Tranquilino Jr Rivera · Answer

Agree. Cash will decrease in the Operating Section of the Cash Flow Statement. Option2.

Vijayabharathi Kalyanasundaram (ACMA - INDIA) · Answer

Cash decreases and operating activities.....because all sales income considered as cash generated for this year need to be adjusted. ..

Ahmed kandil · Answer

Answer2 is the correct answer
Thank you

Wasim khan wazir · Answer

Option2 is correct answer. cash decreases under operating section

مستخدم محذوف‎ · Answer

the correct answer is (2 )

Sanjay Kumar Jangir · Answer

Cash decreases in Operating section because when receivable increase it mean we didn't received the payment and cash decrease.

Bilal Bilal Ashraf · Answer

cash decreases in operating section is right answer option2