Accrual based net sales plus a decrease in accounts receivable for the year would equal cash from customers.

Name: Accrual based net sales plus a decrease in accounts receivable for the year would equal cash from customers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Accrual based net sales reflects the revenue earned during the period, regardless of when payment is received. Subtracting the decrease in accounts receivable (which means less money is owed to the company) from this figure would result in cash from customers.

Accrual Based Net Sales Plus a Decrease in Accounts Receivable