During 2011, the accounts receivable balance of Big Buck Corporation increased. From Big Buck's statement of cash flows, the financial reader would conclude which of the following?
A) This increase indicates that Big Buck sold more than it collected in cash during the period.
B) This increase is added to net income in the operating activities section of a statement of cash flows prepared under the indirect method.
C) This increase is added to sales recognized on the income statement to determine the cash collections from customers during the period.
D) This increase indicates that Big Buck purchased more than it sold in cash during the period.
A
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