Saltransactions are the main source of operating revenue for most business enterprises, and thus, the accounts receivable produced by credit saltransactions are material to the balance sheet for all businessexcept where cash receipts are predominant.

Question

Quizplus · Accepted Answer

This statement is true. Credit sales transactions generate accounts receivable, which are a significant source of operating revenue for most businesses. Therefore, accounts receivable are material to the balance sheet of most businesses, except for those where cash receipts are the primary source of revenue instead of credit sales.

Saltransactions Are the Main Source of Operating Revenue for Most