If Ending Accounts Receivable Exceeds the Beginning Accounts Receivable

question 113

Multiple Choice

If ending accounts receivable exceeds the beginning accounts receivable

• A) cash collections during the period exceed the amount of revenue recognized.
• B) net income for the period is less than the amount of cash-basis income.
• C) no cash was collected during the period.
• D) cash collections during the year are less than the amount of revenue recognized.

---

Definitions:

Elasticity

A measure in economics that shows how the quantity demanded or supplied of a good changes in response to a change in price.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, as opposed to normal goods, where demand increases with income.

Normal Good

A good for which demand increases as the income of consumers increases.

Price Elasticity

measures how much the quantity demanded of a good responds to a change in the price of that good.