If accounts receivable decrease during an accounting period, then the cash received from customers is more than the sales revenue for the period.

Question

Quizplus · Accepted Answer

When accounts receivable decrease, it means that more cash has been collected from customers than the amount of sales made on credit, indicating that cash receipts from customers exceed sales revenue recognized on an accrual basis for the period.

If Accounts Receivable Decrease During an Accounting Period, Then the Cash