ZCMI, Inc, Reported an Increase in Accounts Receivable of $7,000 and and Cash

question 65

Multiple Choice

ZCMI, Inc., reported an increase in Accounts Receivable of $7,000 and cash collections on account of $428,000. Sales on account for the period were:

• A)$428,000.
• B)$421,000.
• C)$7,000.
• D)$435,000.

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Definitions:

Bonds Payable

A long-term debt instrument issued by a company to investors, representing the amount it is obligated to pay back with interest.

Fair Value

A market-based measurement that reflects the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties.

Pre-Tax Profit

The profit earned by a business before any tax is deducted.

Intercompany Sales

Transactions of goods or services between divisions or subsidiaries within the same parent company.