If accounts receivable decreases,this indicates that revenues exceed cash receipts from customers.If accounts receivable increases,this indicates that revenues exceed cash receipts from customers.

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If accounts receivable decreases, it indicates that cash receipts from customers exceed revenues, as the company is collecting more cash than it is recording in sales. If accounts receivable increases, it indicates that revenues exceed cash receipts from customers, as the company is recording more sales on credit than it is collecting in cash.

If Accounts Receivable Decreases,this Indicates That Revenues Exceed Cash Receipts