Using the Following Information: During 2015, Sales on Account

question 100

Multiple Choice

Using the following information: During 2015, sales on account were $145,000 and collections on account were $100,000. Also during 2015, the company wrote off $4,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $40,000. The change in the cash realizable value from the balance at 12/31/14 to 12/31/15 was a

• A)$36,000 increase.
• B)$41,000 increase.
• C)$44,000 increase.
• D)$45,000 increase.

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Definitions:

Interest Rates

The cost of borrowing money, expressed as a percentage of the amount borrowed, or the compensation paid by banks to depositors for saving or depositing money.

Overexploited

Used to describe natural resources that have been excessively used or depleted, often beyond the point of sustainable recovery.

Relative To

A term used to compare or contrast something in relation to something else.

Economic Benefits

The advantages gained from financial activities, including profits, savings, or value creation, contributing to economic growth.