Financial Reporting and Analysis Q149

149A manufacturing company has an accounts receivable balance of $10 million on 1 January 2014. During 2014 the reported revenue was $150 million and cash collected from customers was $155 million. The accounts receivable balance on 31 December 2014 was most likely:

Option : C
Explanation : An increase in a liability is a source of cash and is added. A decrease in liability is a use of cash and is subtracted.

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