The Philamono Bean Company Reported the Following Accounts Receivable Balances

question 63

Multiple Choice

The Philamono Bean Company reported the following accounts receivable balances for 20X8: Given that there were no bad debts written off during the year, this information means that:

• A) credit sales exceeded cash collections from customers during the year.
• B) cash collections from customers exceeded credit sales during the year.
• C) the firm did an excellent job of collecting its receivables.
• D) credit sales increased during the current year over the previous year.

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Definitions:

Compounded Annually

This describes the process where interest is added to the principal balance of an investment or loan once per year, resulting in interest earning interest in subsequent years.

Retirement Account

An investment account specifically designed for saving towards retirement, offering tax advantages.

Compounded Annually

Interest calculation method where the interest earned in one year is added to the principal, and in the following year, interest is earned on the new total.

Equal Annual Withdrawals

A retirement strategy where the retiree withdraws the same amount from their retirement accounts each year.