The Total of the Individual Account Balances in the Accounts

question 14

Multiple Choice

The total of the individual account balances in the accounts receivable master file equals the:

• A) total sales for the period.
• B) balance of the accounts receivable account in the general ledger.
• C) total sales less the total cash received for the period.
• D) balance of the sales account in the general ledger.

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Definitions:

Differential Cost

The difference in cost between two alternative decisions, or the change in costs resulting from an increase or decrease in output.

Differential Revenue

The variation in income resulting from choosing between two different options or time frames.

Differential Effect

The financial impact of a business decision that results in changes to costs or revenue, compared to maintaining the status quo.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated as total assets minus intangible assets and liabilities.