If accounts receivable increases,then sales exceeded cash receipts on account.

Question

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Accounts receivable represents the amount owed by customers to a company for goods or services that have been sold but not yet paid for. If accounts receivable increases, it means that the amount that customers owe the company has increased, which suggests that sales exceeded cash receipts on account. This is because customers have purchased goods or services on credit, which increases the company's accounts receivable balance.

If Accounts Receivable Increases,then Sales Exceeded Cash Receipts on Account