true or false question

Question

If accounts receivable increase during an accounting period, then the cash received from customers is more than the sales revenue for the period.

Answer 1

This would be false as a roll-forward of accounts receivable would require adding current period (non-cash) sales revenue and subtracting cash received to obtain the ending Accounts Receivable balance. If cash received exceed sales revenue, the ending balance would decrease so the statement is false. In other words

Simplified Roll-forward

Beginning AR Balance 1,000

Plus: Sales Revenue 500

Less: Cash Received 600

Ending AR Balance 900

Cash received $600 > Sales Revenue $500 and AR balance decreased so statement is false.