Account Receivable account, increase, someone, provide

pogo

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.

random_walker47

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.

thommo77

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