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Account Receivable

Help please.
How can an increase in the account receivable be considered a use of cash?
Could someone explain or provide an example.
Thanks in advance.

Account receivable implies the company already paid cash for the inventory it sold, but hasn’t received cash for it from the customer. Its a use of company’s cash - effectively it has given a loan to the customer.

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Thanks ravinsu.
So an increase in the account receivable indicates a sale on credit

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