medium · Principles of Finance financial-statements-markets-wc

A firm has 'Unbilled Receivables' that increase significantly. This implies that the company is:

1. Collecting cash payment from customers well before any work has actually started.
2. Deliberately reducing its current tax liability by deferring recognized income.
3. Recognizing revenue for work performed but has not yet sent an invoice to the customer.
4. Paying its outstanding bills to suppliers much faster than it is receiving goods or services.

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