When actual sales are greater than production,
A) inventory will decline.
B) production schedules might have to be revised upward.
C) accounts receivable will rise.
D) All of the options are true.

Question

Quizplus · Accepted Answer

When actual sales exceed production, inventory levels will decline because more goods are being sold than produced. This situation may lead to a revision of production schedules to increase output and meet the higher demand. Additionally, as more sales are made, accounts receivable will rise because more customers owe money for the goods they have purchased.

When Actual Sales Are Greater Than Production