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标题: Account Receivable [打印本页]

作者: pogo    时间: 2013-3-31 17:39     标题: 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.
作者: random_walker47    时间: 2013-3-31 17:39

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.
作者: thommo77    时间: 2013-3-31 17:39

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




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