Final answer:
If ending accounts receivable exceeds the beginning accounts receivable, it means that the company has collected more money from customers during the period than it had at the beginning of the period.
Step-by-step explanation:
If the ending accounts receivable exceeds the beginning accounts receivable, it means that the company has collected more money from customers during the period than it had at the beginning of the period. This indicates that the company has been successful in collecting payments from its customers.
For example, let's say a company had $10,000 in accounts receivable at the beginning of the month and $12,000 at the end of the month. This means the company collected $2,000 from its customers during the month.
Overall, a higher ending accounts receivable compared to the beginning accounts receivable is a positive sign for a company's cash flow and financial health.