If Accounts Receivable Have Increased During a Period

question 98

Multiple Choice

If accounts receivable have increased during a 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:

Indebtedness

A financial metric indicating the total amount of owed financial obligations or debts by an individual, company, or country.

Opportunity Costs

The benefit that is missed or given up when choosing one alternative over another, emphasizing the potential trade-offs in decision-making.

Credit Period

The timespan during which a buyer can purchase goods or services on account, without incurring interest charges.

Account Size

Refers to the total value of an individual's or entity's investments held within a single account.