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

Cash receipts from customers are greater than sales revenues when there is a decrease in accounts receivable. This indicates that customers are paying off their previous balances, leading to more cash being received than the current period's sales revenue.

Cash Receipts from Customers Are Greater Than Sales Revenues When