Accounting for IGCSE & O level - Advanced Principles (Section 6 - No. 46)
If a company's trade receivables collection period increases, what is the most likely impact on its cash flow?
Improved cash flow
Decreased cash flow
No impact on cash flow
Increased sales revenue
הֶסבֵּר
A longer collection period means it takes the business longer to collect cash, which negatively impacts cash flow.