Financial Reporting and Analysis Q150

150In 2012, PIA recorded unearned revenue related to advance booking of its tickets that it will recognize as revenue during 2013. Ignoring income taxes, recognizing advance sale revenue will most likely have which of the following effects on cash from operations in 2013?

Option : A
Explanation : Since cash collections exceeded revenue by $5 million, the accounts receivable balance should come down by $5 million.

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