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

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

1. Collecting cash from customers before the work has started.
2. Reducing its tax liability by deferring income.
3. Recognizing revenue for work performed but has not yet sent an invoice to the customer.
4. Paying its bills faster than it is receiving goods.

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