If accounts receivable increase during a period, then the amount of cash collected from customers will be less than the amount of sales reported on the income statement for the period.

Accounts Receivable

Funds that customers owe to a business for products or services that have been provided but remain unpaid.

Cash Collected

The total amount of money received by a company during a specific period, usually from its operations or activities.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in the net profit or loss for that period.