A decrease in Accounts Receivable during the reporting period indicates that cash collections from customers exceeded sales on the income statement.

Name: A decrease in Accounts Receivable during the reporting period indicates that cash collections from customers exceeded sales on the income statement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A decrease in Accounts Receivable suggests that more cash was collected from customers than the sales made during the period, as the outstanding amount owed by customers has reduced.

A Decrease in Accounts Receivable During the Reporting Period Indicates