What is the impact on accounts receivable if sales exceed cash collections and what is the...
What is the impact on accounts receivable if sales exceed cash collections and what is the impact on accounts payable if cash paid to suppliers exceeds purchases?
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Only accounts payable will increase. |
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Both accounts payable and accounts receivable will increase. |
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Only accounts receivable will increase |
Homework Answers
If Sales Exceeds cash collections accounts receivables will
increase where as if cash paid to suppliers exceeds purchases then
account payable will decrease.
Hence option c only accounts receivable will increase.
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