*please briefly explain your answer as well. Thanks* For simplicity, assume that

Question

*please briefly explain your answer as well. Thanks*

For simplicity, assume that customers never pay in advance. A company booked $100 in sales revenue in a given year but collected $147 in cash from its customers in that year. Cash collections exceeded sales revenue recognized because some o f the cash received was due to collections of cash from sales revenue booked in the prior year. Which one o f the following best describes the adjustment to reconcile net income to the operating cash flows? $47 to be added due to an increase in receivables of $47, which reflects an excess o f revenues over cash collections. $47 to be added due to a decrease in receivables of $47, which reflects an excess o f cash collections over revenues. $47 to be subtracted due to an increase in receivables of $47, which reflects an excess of revenues over cash collections. $47 to be subtracted due to a decrease in receivables of $47, which reflects an excess of cash collections over revenues. $147 to be added due to cash collections.

Explanation / Answer

b. is corerct answer.

I wont get pts for this correct answer but I want to help you & Pts is just an incentive. So Pl wait for my answer next time & only rate my answer. Thanks

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