What Is Implied If the Accounts Receivable Account Has Increased

question 56

Multiple Choice

What is implied if the accounts receivable account has increased?

• A) The firm's sales have decreased relative to the prior year
• B) The firm's cost of sales has decreased relative to the prior year
• C) Cash flow from operating activities is less relative to net income
• D) Cash flow from operating activities is greater relative to net income

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Definitions:

Product Life Cycle

A concept that describes the stages a product goes through from when it is first introduced to the market until it is discontinued.

Cannibalization

When a company's new product eats into the sales of one of its existing products, potentially reducing overall sales revenue.

Pricing Constraints

Limitations or factors that affect the setting of prices for goods and services, such as cost of production, competition, and customer demand.

Regulatory Commissions

Official bodies or organizations responsible for the control and supervision of specific industries or fields, ensuring compliance with laws and regulations.