Assuming inventory is paid for in cash, explain why an increase in accounts receivable means that cash collected during a period is less than the amount of revenue recognized ...

An increase in accounts receivable means that the e ...

Assuming inventory is paid for in cash, explain why an increase in accounts receivable means that cash

Question:

Assuming inventory is paid for in cash, explain why an increase in means that cash collected during a period is less than the amount of revenue recognized.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...