If the Balance of Accounts Receivable Decreases During the Year,then

question 117

Short Answer

If the balance of accounts receivable decreases during the year,then cash collections will __________ sales on account for the period.

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Definitions:

Expense Recognition

An accounting principle that dictates when the cost of business operations should be recorded in the financial statements.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Purchase Returns

Transactions where buyers return previously purchased merchandise to the seller, resulting in a reduction of cost of goods sold for the seller and a refund or credit for the buyer.

Freight-In

The shipping cost for merchandise transported into a company's inventory, typically considered part of the cost of goods sold.