Accounting · Cash Flow Statement
An increase in accounts receivable during a financial year will have what direct effect when preparing the cash flow statement using the indirect method?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Affect investing cash flow only
- 2Not affect operating cash flow
- 3Decrease operating cash flow✓
- 4Increase operating cash flow
Correct answer
Decrease operating cash flow
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