An Aging Schedule Illustrates the Relationship Between

question 48

Multiple Choice

An aging schedule illustrates the relationship between:

• A)Customers and repeat sales
• B)Sales and profitability
• C)The ratio of accounts receivable to sales
• D)Accounts receivable and their average time outstanding

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, summarizing transactions over a period.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Permanent Accounts

Accounts that carry their balances over into the next accounting period, including assets, liabilities, and equity accounts.