At December 1, 2018, Cursive Company's Accounts Receivable Balance Was

question 127

Multiple Choice

At December 1, 2018, Cursive Company's accounts receivable balance was $1,800. During December, Cursive had revenues on account of $7,200 and collected accounts receivable of $6,000. At December 31, 2018, the accounts receivable balance is

• A) $600 debit.
• B) $3,000 debit.
• C) $600 credit.
• D) $3,000 credit.

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Definitions:

Cash Flows

The overall volume of cash inflows and outflows within a corporation, significantly affecting its liquid assets.

Operating Activities

The day-to-day actions that are involved in running a business, such as buying, selling, and producing goods or services.

Indirect Method

A way of preparing the statement of cash flows where net income is adjusted for changes in balance sheet accounts to calculate the cash from operating activities.

Operating

Refers to the day-to-day activities involved in running a business that are essential for generating revenue.