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Why does my AR A/c display negative bal in cash flow statement whilst it is positive?

  • April 24, 2025
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Semi-Pro III
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hello all,

i am curious to know why does, for eg, the AR a/c display a negative figure in the cash flow statement whilst it is positive in reality :

 

Doesnt it should display in positive? since its an increase?

Best answer by Heidi Dempsey

​@Harry In accounting, Net Income is recorded as a credit balance, which is showing as positive on this report, On the other hand, AR is a debit account which decreases the Net Income.

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Heidi Dempsey
Community Manager
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​@Harry In accounting, Net Income is recorded as a credit balance, which is showing as positive on this report, On the other hand, AR is a debit account which decreases the Net Income.

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