UrbanPro
Login Ask & Answer Success Stories Paid Courses Free Classes Tuition & Classes Fees Write a Review All Categories Help Center
Post your Learning Need Signup as a Tutor
✕

Popular Cities

Bangalore

Hyderabad

Delhi

Mumbai

Chennai

Pune

Kolkata

Gurgaon

Ahmedabad

Jaipur

Noida

✕

Take BCom Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Book a Free Demo

BCom Tuition > Learn BCom Tuition > Why are increases in accounts receivable a cash reduction...
✕

Search in

Why are increases in accounts receivable a cash reduction on the cash flow statement?

Asked by Last Modified  

7 Answers

Learn BCom Tuition

Follow 0
Answer

Please enter your answer

Commerce Tutor

because you are not receiving cash against the sale which means your debtors are increasing.In hindi we can say that paise ka na aana bhi jana hota hai.
Comments
Dislike Bookmark

Experienced teaching experience for 20 years

Increase in account receivable means that you will not receive cash on sale immediately but later on I.e. holding of cash now and reduction in cash
Comments
Dislike Bookmark

Accounts Teacher

When business buys raw materials for manufacturing / ready goods for trading, it pays the supplier cash - Cash Outflow. The raw material is converted into finished goods. At this point, there is an increase in stock (finished goods). Hence, increase in stock is assumed to be cash reduction in cash flow...
read more
When business buys raw materials for manufacturing / ready goods for trading, it pays the supplier cash - Cash Outflow. The raw material is converted into finished goods. At this point, there is an increase in stock (finished goods). Hence, increase in stock is assumed to be cash reduction in cash flow statement. On the other hand, if a good is sold, and there is immediate receipt of cash, then there is cash inflow and it negates the cash outflow that happened initially. If goods are sold on credit, there is no immediate cash inflow. In other words, the cash that was used to buy the goods initially has not returned to the business. Hence, increase in accounts receivables is cash reduction in cash flow statement read less
Comments
Dislike Bookmark

Tutor for Accounts/ Costing/ Direct tax

As you are not getting physical cash at disbursement for now we reduce increase in debtors in cash flow
Comments
Dislike Bookmark

Tutor

because the cash have given to debtor and issuance of bill receivable so the firm point of view it's cash outflow
Comments
Dislike Bookmark

CA-Inter Cleared (Accounting Technician Executive)

The simple reason is you are blocking and parking that much of amount in your receivable rather than receiving them immediately..This may be due to by receiving in installment u may earn more than receiving immediately..
Comments
Dislike Bookmark

Commerce Tutor

Its just because you have not received cash against the supply of materials..in hindi we can say that paise ka na aana bhi jana hota hai..thats why we reduce cash in cash flow statement.
Comments
Dislike Bookmark

View 5 more Answers

Related Questions

What is your advice for first year bcom students?
My suggestion to B.com Students is to understand the concept of the subject and get more practical knowledge in accounting subjects as it will help you in your future as this is competitive world. Don't...
Mrunal
0 0
7
I have studied my degree bcom in st marys degree college. but i discontinued in 3rd year in 2014. not in 2016 is it possible for me to get re-admission in 3rd year and write regulars exam in march/april.
Some colleges will agree if you spend much penny or have to study from second year
Jasper
0 0
8
Can I do a BCom after 12th science?
Yes u can if u have taken commerce in ur 12th and completed with good score
I T Roxaana
Hi, I want to know the correspondence procedure of doing t.y. B.Com at home. Now there is 40-60 exam procedure I have done sy B.Com in 1997. Please tell as soon as possible.
Hello dear contact me for any course and qualification, I provided higher study coaching.
Priya
0 0
7
Please suggest good computer courses for my son 16 year old studying 12th commerce.
Ms office & Tally
Rohini

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

GST Updates.
GST Updates: 1) PAN is mandatory for taking registration under GST. PAN will be validated by CBDT. After successful validation, registration will be granted. 2) If a person has a SEZ unit, then he is...
F

FR Prashanth Reddy

Statistics
Measures of Central Tendency: There are three measures of central tendency that are: Mean: It is used to represent the average of the data. Median: It is used to represent the middle value. Mode:...

Astha V.

0 0
0
What are the Top 10 mistakes one make during giving an Interview ?
Top 10 mistakes people make in an Interview: Lack of Preparation Unimpressive Introduction Defensive Body posture Baggage in Interview Dressing with Distractions Mismatch between your attire and...

Debeshi C.

1 0
0
What is a perfect EXIT STRATEGY?
Exit strategy is equally important for intra-day and positional trades; however in case of intra-day trading exit strategy plays crucial role as the time allocated for our trade to perform is limited...

Supriya T.

0 0
0
Introduction Of Auditing
What is Audit? It can be said that auditing is the process by which a competent independent individual collects and evaluates evidence to form an opinion and communicates his opinion to the person interested,...
F

FR Prashanth Reddy

Recommended Articles

6 Exam Hall Tips To Follow, For Every Good Student

Appearing for exams could be stressful for students. Even though they might have prepared well, they could suffer from anxiety, tension etc. These are not good for their health and mind. However, following a few exam preparation tips can save them from all these and help them to score good marks. Let’s find out all...

Read full article >

6 Healthy Habits of School Children

While schools provide formal education to the children, the home is where they start learning about things informally. Parents think that schools will take the initiative to educate their children. Well, this is partially true, as parents also play an essential role in bringing up their child. For the development of particular...

Read full article >

How To Choose The Right School For Children?

Quality education does not only help children to get a successful career and life, but it also hugely contributes to society. The formal education of every child starts from school. Although there are numerous schools, parents find it challenging to choose the right one that would fit their child. It is difficult for them...

Read full article >

Science, Arts Or Commerce - Which One To Go For?

Once over with the tenth board exams, a heavy percentage of students remain confused between the three academic streams they have to choose from - science, arts or commerce. Some are confident enough to take a call on this much in advance. But there is no worry if as a student you take time to make choice between - science,...

Read full article >

Find BCom Tuition near you
BCom Tuition in Delhi
BCom Tuition in Mumbai
BCom Tuition in Bangalore
BCom Tuition in Hyderabad
BCom Tuition in Chennai
BCom Tuition in Kolkata
BCom Tuition in Pune
BCom Tuition in Gurgaon
BCom Tuition in Jaipur
BCom Tuition in Ahmedabad

Looking for BCom Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you
X

Looking for BCom Tuition Classes?

The best tutors for BCom Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take BCom Tuition with the Best Tutors

The best Tutors for BCom Tuition Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more

ThinkVidya Learning Pvt Ltd © 2010-2024All Rights Reserved