Which Transaction and Amount in Sales and Collections Transactions Is

question 35

Multiple Choice

Which transaction and amount in sales and collections transactions is ultimately included in balance sheet accounts?

• A) Accounts receivable
• B) Provision for doubtful debts
• C) Cash
• D) All of the above

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Definitions:

Financial Information

Data relating to the financial performance, position, and cash flows of a business, which is used by stakeholders to make economic decisions.

Return on Total Assets

A profitability ratio that measures net income produced by total assets within a period.

Financial Information

Data that pertains to the financial status, performance, and changes in financial condition of an entity.

Days' Sales Uncollected

A measure of how quickly a company converts its accounts receivable into cash, indicating the average number of days sales remain uncollected.