The Accounts Receivable Account of Rosewood Company Has the Following

question 85

Multiple Choice

The Accounts Receivable account of Rosewood Company has the following postings: Calculate the ending balance of the account.

• A) $33,000 debit
• B) $27,000 debit
• C) $6,000 credit
• D) $21,000 debit

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Definitions:

Disposable Income

The net income available to individuals or households after taxes have been deducted, available for spending, saving, or investing.

Consumption

The act of using goods and services by households, contributing to the overall demand in an economy.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income.

Disposable Income

The financial resources families have for expenditures and savings after income taxes are removed.