An Analysis and Aging of the Accounts Receivable of Hugh

question 183

Multiple Choice

An analysis and aging of the accounts receivable of Hugh Company at December 31 revealed the following data: The cash realizable value of the accounts receivable at December 31, after adjustment, is:

• A) $794,000.
• B) $844,000.
• C) $850,000.
• D) $894,000.

---

Definitions:

Debit Side

The left side of a ledger account that is used to record increases in assets, expenses, and decreases in liabilities, equity, and income.

Asset Accounts

Ledger accounts that record a company's owned resources with economic value expected to provide future benefits.

Compound Entry

An accounting entry that involves more than two accounts, where there are multiple debits, credits, or both.

Three Accounts

A fundamental concept in accounting that typically refers to the three major financial statements: the balance sheet, income statement, and cash flow statement.