. A company may mask financial distress by reporting top-line growth, but if such growth cannot be explained by anything such as the introduction of a new product or expansion into a new market, it raises red flags. If accounts receivable increase sharply but seem not to be matched by the growth in sales, then it could inflate revenue figures for the firm. Accounts receivable is the amount of money customers owe to the firm. If accounts receivable are increasing at a higher rate than sales growth, that would mean the firm will be collecting revenue from sales for which the firm has yet to receive collection.