Follow Us :

Financial Reporting and Analysis Q149

0. A manufacturing company has an accounts receivable balance of $10 million on 1 January 2014. During 2014 the reported revenue was $150 million and cash collected from customers was $155 million. The accounts receivable balance on 31 December 2014 was most likely:

  • Option : C
  • Explanation : An increase in a liability is a source of cash and is added. A decrease in liability is a use of cash and is subtracted.
Cancel reply

Your email address will not be published. Required fields are marked *


Cancel reply

Your email address will not be published. Required fields are marked *