Crabtree Company's Tabular Analysis at the Beginning of August Included

question 108

Multiple Choice

Crabtree Company's tabular analysis at the beginning of August included the following balances: How would Crabtree record the payment of the total amounts due to its creditors in the tabular analysis?

• A)Decrease Cash by $2000 and increase Revenues by $2000.
• B)Decrease Cash by $1500 and decrease Accounts Payable by $1500.
• C)Increase Cash by $2000 and decrease Accounts Receivable by $2000.
• D)Increase Cash by $1500 and decrease Accounts Payable by $1500.

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Definitions:

Planning Budget

A financial plan that estimates future revenues, expenses, and other financial needs for a specific period.

Customers Served

The total number of clients or customers that a business or facility has provided services or goods to within a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels within a business.

Customers Served

The number of individual clients or customers that a business has provided products or services to within a specific timeframe.