Question

If rent receivable decreases during the period, cash received from renters is _____ rent revenue reported on the income statement.

Answer 1

Greater than

Step-by-step explanation:

In the case when the rent receivable i.e. current asset decreased during the period and the cash received from renters would be more than the rent revenue i.e. reported on the income statement

This condition would be adverse in that case when the rent receivable increased and the cash received would be less than the rent revenue

Here cash received could be computed by deducting an increase or adding a decrease