An increase in Accounts Receivable during the reporting period indicates that cash collections from customers was less than credit sales on the income statement.

Name: An increase in Accounts Receivable during the reporting period indicates that cash collections from customers was less than credit sales on the income statement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in Accounts Receivable means that more customers owe money to the company, which implies that cash collections were less than credit sales.

An Increase in Accounts Receivable During the Reporting Period Indicates