Question: Question Mode Multiple Choice Question When using the direct method, why is a decrease in Accounts Receivable added to Sales Revenue when computing cash collected

Question Mode
Multiple Choice Question
When using the direct method, why is a decrease in Accounts Receivable added to Sales Revenue when computing cash collected from customers?
Multiple choice question.
There were fewer cash sales than credit sales during the year.
There were more collections of accounts receivable than there were sales on account during the year.

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