If a company's Sales Revenue was $171,356 and cash collected from customers was $167,803,which of the following would be consistent with this difference?
A) Accounts Receivable could have decreased.
B) Cash payments could have been larger than the related expense accounts.
C) Accounts Receivable could have increased.
D) Cash payments could have been smaller than the related expense accounts.

Question

Quizplus · Accepted Answer

The difference between Sales Revenue and cash collected from customers could be due to an increase in the Accounts Receivable balance, meaning that some customers still owe the company money for sales made during the period.

If a Company's Sales Revenue Was $171,356 and Cash Collected