The Ending Balance of Accounts Receivable Was $69,000

question 75

Multiple Choice

The ending balance of accounts receivable was $69,000. Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $354,000. Sales reported on the income statement were $378,000. Based on this information, the beginning balance in accounts receivable was:

• A) $93,000
• B) $24,000
• C) $94,000
• D) $45,000

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Definitions:

Vertical Merger

A merger in which a company at one level of the manufacturing-distribution system acquires a company at another level of the system.

Tying Arrangement

Illegal agreement in which the sale of one product is tied to the sale of another.

Antitrust Laws

Legislation enacted to promote competition and prevent monopolies by regulating anti-competitive business practices.

Scuba Gear

Equipment used for underwater diving that allows a diver to breathe underwater, typically including items such as a mask, fins, regulator, and an air tank.