Ask Question
4 August, 11:59

How does the following transaction impact cash flow?

Recording an account receivable for the sale of goods to a customer.

Positive (Increase)

No Impact

O Negative (Decrease)

Answers (1)
  1. 4 August, 13:23

    The accounts receivable asset shows how much money customers who bought products on credit still owe the business; this asset is a promise of cash that the business will receive. Cash doesn't increase until the business collects money from its customers.
Know the Answer?