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A Company Reported an Increase in Accrued Sales Revenues and a Decrease

Question 96

Multiple Choice

A company reported an increase in accrued sales revenues and a decrease in unearned sales revenues during 2016. Which of the following statements is correct?


A) When determining cash collected from customers, both the increase in accrued revenues and the decrease in unearned revenues are subtracted from sales revenues.
B) When determining cash collected from customers, both the increase in accrued revenues and the decrease in unearned revenues are added to sales revenues.
C) When determining cash collected from customers, the increase in accrued revenues is subtracted from sales revenues and the decrease in unearned revenues is added to sales revenues.
D) When determining cash collected from customers, the increase in accrued revenues is added to sales revenues and the decrease in unearned revenues is subtracted from sales revenues.

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