T-Account: Partial List of Account Balances at the End

question 45

Multiple Choice

T-account: Partial list of account balances at the end of the year:
$\begin{array}{lr}\text { Cash } & \$ 28,000 \\\text { Accounts Receivable } & \text { Unknown } \\\text { Equipment } & 35,600 \\\text { Accounts Payable } & 5,900\end{array}$ Which of the following is an accurate description of the economic events involving Accounts Receivable as documented in the T-account above?

• A)Sales to customers on account exceeded the payments received from customers on account.
• B)Payments received from customers on account exceeded the sales made to customers on account.
• C)The company paid off its debt more than it incurred new debt.
• D)The company incurred more debt than it paid off.

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Definitions:

Red Blood Cells

Cells in the blood that carry oxygen from the lungs to all parts of the body and return carbon dioxide to the lungs for exhalation.

Transporting Oxygen

The primary function of the respiratory and circulatory systems, allowing oxygen to be inhaled into the lungs, carried by red blood cells, and delivered to tissue.

Tissue Cells

The basic structural and functional units of tissues in living organisms, varying widely in structure and function based on their location and task.

Coagulation

The process of blood changing from a liquid to a gel, forming a blood clot, which is an essential part of hemostasis to stop bleeding.