Accounts Receivable Accounts for Specific Customers Are Important Because They

question 103

Multiple Choice

Accounts receivable accounts for specific customers are important because they show

• A) How much each customer purchases
• B) How much each customer has paid
• C) How much each customer still owes
• D) The basis for sending bills to customers
• E) All of these

---

Definitions:

Cash Account

A financial account that tracks the amount of cash inflows and outflows, representing the company's liquid assets.

Increases

The act or process of becoming larger or greater in size, amount, number, or degree.

Posting

The process of transferring the debits and credits from the journal entries to the accounts.

Journal Entries

An accounting action recorded through the logging of debits and credits across accounts, forming the basis for building financial statements and tracking financial transactions.