There Is Significant Interaction Between Cash Receipt Transactions and Accounts

question 58

Multiple Choice

There is significant interaction between cash receipt transactions and accounts receivable because _______.

• A)the creation of an account receivable indicates receipt of cash
• B)a misstatement of cash receipts will result in a misstatement of accounts receivable.
• C)a misstatement of cash receipts will result in a misstatement of interest payments
• D)the settlement of an account receivable will result in a decrease to the cash account