If Sales Revenue Was $1,800,000 and Accounts Receivable Decreased $40,000

question 16

True/False

If sales revenue was $1,800,000 and accounts receivable decreased $40,000 during the year,then cash collected from customers equals $1,840,000.

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Definitions:

Balance Sheet Errors

Mistakes that occur in the preparation of the balance sheet, including misclassifications, incorrect amounts, or omitted transactions.

Retained Earnings

The portion of a company's profits that is kept or retained rather than distributed to shareholders as dividends, typically used for reinvestment.

Accounts Closed

This term refers to the process of clearing the balance of temporary accounts at the end of the accounting period and transferring the balances to permanent accounts.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts in order to verify that total debits equal total credits.