Gaulle Company Began the Year with a Balance of $6,000

question 58

Multiple Choice

Gaulle Company began the year with a balance of $6,000 in Accounts Receivable and ended the year with $9,000 in the account.Revenues for the period amounted to $38,000.Under the direct method,Gaulle will report cash collected from customers of

• A)$44,000.
• B)$35,000.
• C)$41,000.
• D)$47,000.

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Definitions:

Inventory Turnover

Inventory Turnover is a ratio that shows how many times a company's inventory is sold and replaced over a period.

Accounts Receivable Collection

The process of recovering funds that are due from customers who have purchased goods or services on credit.

Customer Discount

A reduction in the price of goods or services offered to buyers, often used as a sales promotion strategy.

Marketable Securities

Assets that can be rapidly turned into cash at an acceptable value.