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

Question

Quizplus · Accepted Answer

When accounts receivable decrease, it means that customers are paying off their credit balances, resulting in cash receipts being greater than the sales revenues recorded.

Cash Receipts from Customers Are Greater Than Sales Revenues When