If Accounts Receivable Have Increased During the Period

question 25

Multiple Choice

If accounts receivable have increased during the period

• A) revenues on an accrual basis are less than revenues on a cash basis.
• B) revenues on an accrual basis are greater than revenues on a cash basis.
• C) revenues on an accrual basis are the same as revenues on a cash basis.
• D) expenses on an accrual basis are greater than expenses on a cash basis.

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Definitions:

Cash Withdrawal

The act of taking money out of a bank account or cash reserve.

Accounting Equation

The foundational equation in accounting, Assets = Liabilities + Equity, representing the relationship between a company's resources and its sources of financing.

Service To Customer

Activities and benefits provided by a business to its customers, aimed at satisfying their needs and expectations.

Accounting Equation

The foundational principle of accounting expressing that assets equal the sum of liabilities and shareholder's equity.