Which of the Following Statements Is Correct

Which of the following statements is correct?

A) A decrease in the accounts receivable balance means that credit sales exceeded cash collections from customers.
B) The accounts receivable balance increases when cash collected from customers exceeds credit sales.
C) A decrease in accounts receivable is deducted from net income when determining cash flow from operations.
D) An increase in accounts receivable is deducted from net income when determining cash flow from operations.

Correct Answer:

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