Which of the Following Statements Is Correct

question 123

Multiple Choice

Which of the following statements is correct?

• A)A decrease in the accounts receivable balance means that credit sales exceeded cash collections from customers.
• B)The accounts receivable balance increases when cash collected from customers exceeds credit sales.
• C)A decrease in accounts receivable is deducted from net income when determining cash flow from operating activities.
• D)An increase in accounts receivable is deducted from net income when determining cash flow from operating activities.

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Definitions:

ADH

Antidiuretic hormone, also known as vasopressin, which helps regulate water balance in the body by controlling the amount of water reabsorbed by the kidneys.

Alcohol

An organic compound characterized by one or more hydroxyl (-OH) groups attached to a carbon atom.

Urine Production

The process by which the kidneys filter the blood, removing waste products and excess substances to form urine.

Angiotensinogen

A glycoprotein produced by the liver that is the precursor to angiotensin, playing a key role in blood pressure regulation.