Cash revenues in a particular year are equal to sales less:
A) the change in capital investment.
B) the change in accounts payable.
C) the change in NWC.
D) the change in accounts receivable.

Question

Quizplus · Accepted Answer

Cash revenues are equal to sales less the change in accounts receivable, as an increase in accounts receivable represents sales that were made but not yet collected in cash.

Cash Revenues in a Particular Year Are Equal to Sales