A Company Reported an Increase in Accounts Receivable and an Increase

question 90

Multiple Choice

A company reported an increase in accounts receivable and an increase in unearned sales revenues during 2014. 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:

Starchy

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