NO
No
increase
Acceleration in the collection of receivables will tend to cause the accounts receivable turnover to increase. Many companies use collection agencies to help them with this process.
Increase in accounts receivable causes the reduction in cash because if sales are made on cash then there is no increase in accounts receivable and company receives cash which causes the increase in cash while accounts receivable not.
This is pretty simple to answer as it doesn't need a lot of explanation or examples. An increase in accounts receivable would decrease a company's cash flow (incoming cash would be effected.) Accounts receivable are accounts of persons or other company's that owe you (or your company) money but has not yet been paid. Since this shows money owed to you by another there is no "cash" changing hands and that of course effects you (or your company's) cash flow.
No
increase
Acceleration in the collection of receivables will tend to cause the accounts receivable turnover to increase. Many companies use collection agencies to help them with this process.
Increase in accounts receivable causes the reduction in cash because if sales are made on cash then there is no increase in accounts receivable and company receives cash which causes the increase in cash while accounts receivable not.
This is pretty simple to answer as it doesn't need a lot of explanation or examples. An increase in accounts receivable would decrease a company's cash flow (incoming cash would be effected.) Accounts receivable are accounts of persons or other company's that owe you (or your company) money but has not yet been paid. Since this shows money owed to you by another there is no "cash" changing hands and that of course effects you (or your company's) cash flow.
it will increase your income and Accounts recievable
Due to increased credit sales there is a chance of increase of accounts receivable in balance sheet.
Accounts receivable increases with more sales on credit to customers without receiving money from previous customers.
If increased sales are all on credit then it will also increase the accounts receivable as well.
the company is collecting accounts receivable amount equal to the increase in credit
This depends on what caused the increase. Accounts receivable is the account used when a person or company owes YOU money. With an increase in AR, that means you either performed a service or sold goods to a person or company on account. Since this is an "increase" you will (ADD) the amount to your Account Receivable and Income (or Revenue).
No, if your accounts receivable is increasing then you are not collecting cash in from your debtors as quick as you are raising invoices to them therefore your cash flow is decreasing due to trapping working capital in debtors