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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)

+3
Answers (1)
  1. 4 August, 13:23
    0
    Increase

    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.
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