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:

Profit Center

A distinct segment of a business that is responsible for generating its own revenue and profit, enabling better tracking of financial performance.

Value-Adding Activity

Any action or process that increases the worth of a product or service to customers, making it more desirable or enhancing its quality.