Sales revenue is $100,000. Accounts receivable increased by $2,000. Cash received from customers is:
A) $98,000.
B) $100,000.
C) $102,000.
D) indeterminable from the information provided.

Question

Quizplus · Accepted Answer

When accounts receivable increases, it means that not all sales revenue was collected in cash. The increase in accounts receivable by $2,000 implies that $2,000 of the sales revenue was not received in cash, so the cash received from customers is $100,000 - $2,000 = $98,000.

Sales Revenue Is $100,000