SHE Management Corporation Had Accounts Receivable of $105,000 and $120,000

question 27

Multiple Choice

SHE Management Corporation had accounts receivable of $105,000 and $120,000 on January 1, 2020, and December 31, 2020, respectively. Sales on account in 2020 were $310,000. The amount of
Collections o be reported on the statement of cash flows under the operating activities is:

• A) $15,000
• B) $325,000
• C) ($15,000)
• D) $295,000

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Definitions:

Price Elasticity

An assessment of the extent to which the demand or supply of a product shifts following a price adjustment.

Total Amount

The complete sum or quantity of something, often referring to money, goods, or services.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Supply Shift

A change in the quantity of a good or service that suppliers are willing and able to sell at a given price, due to factors other than price itself.