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:

Overestimate

To assess something as being larger, better, or more important than it actually is.

Underestimate

To judge something below its actual value, size, or importance.

Accomplish

To complete successfully or to achieve a set goal or objective.

Year

A period of approximately 365 or 366 days, divided into 12 months, used in the Gregorian calendar to measure the time a complete orbit of the Earth around the Sun takes.