Which of the following balance sheet accounts is most likely to vary directly with sales?

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Accounts receivable is an asset account that represents the amounts owed to a company by its customers for sales made on credit. As sales increase, the amount owed by customers also increases, leading to a direct relationship between accounts receivable and sales. The other options, depreciation, long-term debt, and common equity, are not directly related to sales. Accounts receivable is an asset account that represents the amount owed to a company for goods or services sold on credit. As sales increase, the amount owed to the company from customers also increases, leading to a direct variation with sales. Depreciation, long-term debt, and common equity do not vary directly with sales.

Which of the Following Balance Sheet Accounts Is Most Likely