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

1. Cash increases - Financing section

 

2. Cash decreases - Operating section

 

3. No change

 

4. Cash increases - Operating section

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Question added by Shazia Anees , Assistant Manager Finance , Arham Trading Company
Date Posted: 2015/06/15
Abbas  Bharmal CA Inter M com Looking for New
by Abbas Bharmal CA Inter M com Looking for New , Senior Accountant , Msheireb Properties

Option2 cash decreases - operating section.....

Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

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

Ajay Dutt
by Ajay Dutt , Senior Accountant , Concept Zone Group of Companies

The answer is option2. Cash decreases operating section.

Saidul Alam
by Saidul Alam , Accountant , Akhtar Al Balushi Trad. & Cont. L.L.C

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

Tranquilino Jr Rivera
by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

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

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

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Answer2 is the correct answer Thank you

Wasim khan wazir
by Wasim khan wazir , Finance Specialist , Mott Macdonald

Option2 is correct answer.  cash decreases under operating section

Deleted user
by Deleted user

the correct answer is (2 ) 

Sanjay Kumar Jangir
by Sanjay Kumar Jangir , Finance Executive , Alchemy Stones India

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

Bilal Bilal Ashraf
by Bilal Bilal Ashraf , Assistant Accountant and Office Admin , Hamdaani Food Company

cash decreases in operating section is right answer option2

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