Financial Reporting and Analysis Q151

151In 2012, PIA recorded unearned revenue related to advance booking of its tickets, which it will recognize as revenue during 2013. This recognition of the advance sale revenue will most likely have which of the following effects on cash from operations in 2013?

Option : A
Explanation : PIA received the cash in 2012 when it recorded the unearned revenue and it was a part of the cash from operations in that year. In 2013, the revenue is earned so it will increase the taxes which will decrease the cash from operations.

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