Using the Following Information: During 2014, Sales on Account

question 58

Multiple Choice

Using the following information: During 2014, sales on account were €290,000 and collections on account were €172,000. Also during 2014, the company wrote off €16,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at €118,000. The change in the cash realizable value from the balance at 12/31/13 to 12/31/14 was a

• A) €134,000 increase.
• B) €118,000 increase.
• C) €74,000 increase.
• D) €102,000 increase.

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Definitions:

Tax Revenues

The money that governments procure from tax collection.

Local Governments

Administrative bodies in smaller geographical areas within a country that govern at a level below that of the state or federal government.

Expenditures

Expenditures are the expenses incurred by individuals, businesses, or governments in paying for goods and services.

Benefits-received Principle

This principle suggests that individuals should pay taxes in proportion to the benefits they receive from government services.