After the Accounts Are Adjusted and Closed at the End

question 89

Multiple Choice

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000. What is the net realizable value of the accounts receivable?

• A) $51,000
• B) $289,000
• C) $340,000
• D) $391,000

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Definitions:

Capital Stock

The total amount of physical, human, and intellectual capital that a country possesses at any given time.

Beneficial Supply Shock

An unexpected event that increases the production capacity and decreases the prices of goods and services.

Potential Output

The maximum sustainable level of real GDP over the long term that does not lead to an increase in inflation.

Price Level

This term refers to the average of current prices across the entire spectrum of goods and services produced in the economy.