A Company Reported an Increase in Accounts Receivable and an Increase

question 69

Multiple Choice

A company reported an increase in accounts receivable and an increase in unearned sales revenues during 2019.Which of the following statements is correct?

• A)Cash collected from customers equals sales revenues plus both the increase in accounts receivable and the increase in unearned sales revenues.
• B)Cash collected from customers equals sales revenues minus both the increase in accounts receivable and the increase in unearned sales revenues.
• C)Cash collected from customers equals sales revenues plus the increase in accounts receivable,minus the increase in unearned sales revenues.
• D)Cash collected from customers equals sales revenues minus the increase in accounts receivable,plus the increase in unearned sales revenues.

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Definitions:

Priming

A psychological effect in which exposure to a stimulus influences a response to a later stimulus.

Crucial Item

An element deemed extremely important or essential in a particular context or situation.

Congruent

In agreement or harmony; matching or fitting together well.

Abstract Level

The degree to which an idea, statement, or concept is general, non-specific, and divorced from specific instances or practical application.