Question

True or false: A cash receipts analysis of customer payment patterns will always reflect the collection of 100 percent of the sales dollars identified in the sales forecast.

Answer 1

A cash receipts analysis does not always reflect the collection of 100 percent of the sales dollars identified in the sales forecast.

Step-by-step explanation:

The statement that a cash receipts analysis of customer payment patterns will always reflect the collection of 100 percent of the sales dollars identified in the sales forecast is false.

A cash receipts analysis examines the actual cash received from customers over a certain period of time.

It does not take into account factors such as customers not paying their invoices, returns or discounts given, or any other adjustments to the initial sales forecast.