Jim Debt Was Reviewing the Total Accounts Receivable

question 91

Multiple Choice

Jim Debt was reviewing the total accounts receivable. This month he received $80,000 from credit customers. This represented 40% of all receivables due. The total amount of accounts receivable due is:

• A)$200,000.
• B)$320,000.
• C)$500,000.
• D)$230,000.
• E)None of these.

---

Definitions:

Economic Activity

Economic activity encompasses all actions that involve the production, distribution, and consumption of goods and services in an economy.

Depreciation

The value of capital stock used up to produce GDP or that becomes obsolete during the year

Worn-Out Capital

Assets that have reached the end of their useful life in production processes, often leading to decreased efficiency and increased maintenance costs.

National Income Accounting

A statistical approach that measures the overall economic activity and income of a country.