An easy way to remember whether the impact on Cash (and hence the adjustment to net income)
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An easy way to remember whether the impact on Cash (and hence the adjustment to net income) is an addition or a subtraction is to pretend that only that one account and Cash exist, at least for a moment in time.
For example, if Cash and Accounts Receivable were the only accounts, a decrease in Accounts Receivable would have to mean a(n) [increase /
decrease] in Cash.
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