During 2013, the accounts receivable balance increased.
A)This indicates that credit sales exceeded collections on account during the period.
B)This increase is added to net income in the operating activities section of a statement of cash flows prepared under the indirect method.
C)This increase is added to credit sales to determine the collections on account during the period.
D)This indicates that there were no cash sales during the period.

Question

Quizplus · Accepted Answer

An increase in the accounts receivable balance implies that credit sales were made during the period but not yet collected, indicating that credit sales exceeded collections on account during the period.

During 2013, the Accounts Receivable Balance Increased