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:

Economic Impact

The effect of an event, policy, or market change on the economy, which may include changes in employment, GDP, and consumer spending.

USMCA

United States-Mexico-Canada Agreement, a trade deal that replaced NAFTA to support mutually beneficial trade among the three countries.

Tariff

A tax imposed on imported goods and services, aimed to make imported goods more expensive and thus less competitive compared to domestic goods.

Imported Rice

Rice that is produced in one country and then shipped and sold in another country, often to meet demand that cannot be met by domestic production.