If Accounts Receivable decreases on a comparative balance sheet,this means:
A)collections were more than sales.
B)credit sales are decreasing.
C)credit sales are increasing more than collections.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

When Accounts Receivable decreases, it indicates that collections on outstanding invoices or credit sales have exceeded the amount of new credit sales during the period, leading to a net reduction in the Accounts Receivable balance.

If Accounts Receivable Decreases on a Comparative Balance Sheet,this Means