This example shows that if the ending balance in Accounts Receivable was less than its beginning balance,

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This example shows that if the ending balance in Accounts Receivable was less than its beginning balance, the increase in Cash would be [more than / less than / the same as] the amount of Revenues.

Part of the increase in Cash would be the result of decreasing Accounts Receivable. Put another way, Cash increased partly because more old customers paid their bills and partly because of sales to new customers.

This is what happened in Chico Company.

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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