Cash receipts from customers are greater than sales revenues when there is a(n)
A) increase in trade receivables
B) decrease in trade receivables
C) increase in cost of goods sold
D) decrease in cost of goods sold

Question

Quizplus · Accepted Answer

Cash receipts from customers exceed sales revenues when trade receivables decrease, as this indicates that more cash is being collected from past sales than new credit sales being made.

Cash Receipts from Customers Are Greater Than Sales Revenues When