The Accounts and Balances Shown Below Were Gathered from Paynter

question 37

Multiple Choice

The accounts and balances shown below were gathered from Paynter Corporation's trial balance on December 31, 2011. All adjusting entries have been made.

The amount that should be reported as current assets on Paynter Corporation's balance sheet is

• A) $151,300.
• B) $164,900.
• C) $217,300.
• D) $267,300.

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Definitions:

Accounts Receivable

Funds that customers owe to a business for products or services provided but not yet compensated for.

Liquidity

A measure of how easily assets can be converted into cash without significant loss in value.

Deposits in Transit

Funds that have been received and recorded by a business but not yet recorded by the bank, leading to a discrepancy in the accounting records until the deposit clears.

Currency

A system of money in general use in a particular country.