If a company's sales revenue was $171,356 and cash collected from customers was $167,803,which of the following would be consistent with this difference?

Question

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The difference between sales revenue and cash collected from customers is $3,553 ($171,356 - $167,803). This could happen if accounts receivable increased by $3,553, meaning that even though the company made sales, not all of them were collected in cash. This could be due to customers not yet paying their invoices. Option A is incorrect because if accounts receivable decreased, the cash collected from customers would have been larger than the sales revenue. Option B is also incorrect because larger cash payments than expense accounts would result in a lower net income, not just a difference between sales revenue and cash collected. Option D is incorrect because smaller cash payments than expense accounts would still result in a positive cash flow, meaning the cash collected from customers would be larger than the sales revenue.

If a Company's Sales Revenue Was $171,356 and Cash Collected