Hilde Company Reported Accounts Receivable of $40 000 at the Beginning

question 28

Multiple Choice

Hilde Company reported accounts receivable of $40 000 at the beginning of the year. It now reports a balance of $28 000 at the end of the year. From this information, assuming there were no accounts written off as bad debts during the year, it is possible to determine that during the year:

• A) credit sales were higher than cash collected from customers.
• B) credit sales were less than cash collected from customers.
• C) the firm was doing a poor job of collecting its receivables.
• D) credit sales decreased from the previous year.

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Definitions:

Articles of Confederation

The Articles of Confederation was the first constitution of the United States, in effect from 1781 to 1789, that provided a loose federation of sovereign states and a weak central government.

Voluntary Association

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Independent States

Sovereign entities that have control over their own territory, with the power to make and enforce laws, and engage in relations with other states.

Bicameral Legislature

A legislative body consisting of two separate chambers or houses, typically an upper and a lower house, each with distinct powers and responsibilities.