Question: Question 2 5 5 pts Why does an increase in Accounts Receivable reduce a firm's net cash flow? The firm has increased the amount of
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pts
Why does an increase in Accounts Receivable reduce a firm's net cash flow?
The firm has increased the amount of uncollected cash from its sales.
The firm's cost of goods sold has increased its Accounts Receivable.
The firm has not yet paid it suppliers.
This statement is incorrect; an increase in Accounts Receivable improves the firm's net cash flow.
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