Which of the following indicates a cash receipt?
A)A decrease in accrued expenses,such as wages payable.
B)A decrease in accounts receivable.
C)An increase in inventory.
D)A decrease in accounts payable.

Question

Quizplus · Accepted Answer

Cash receipts are typically indicated by a decrease in accounts receivable, as this means that a customer has paid their outstanding balance in cash. The other options all indicate a decrease in liabilities or an increase in assets, but these do not necessarily indicate a cash receipt.

Which of the Following Indicates a Cash Receipt