An Accounts Receivable Ledger Is A

question 14

Multiple Choice

An accounts receivable ledger is a:

• A) List of the separate accounts that show the balances outstanding from credit customers.
• B) Book of original entry that is designed and used for recording only sales on credit.
• C) Ledger that contains all financial statement accounts of a business.
• D) Subsidiary ledger that contains a separate account for each party that grants both short-term and long-term credit on account to the company.
• E) Subsidiary ledger that contains an account for each supplier (creditor).

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Definitions:

Inventory Turnover Rate

A measure of how quickly a company sells and replaces its stock of goods within a given period, indicating the efficiency of its inventory management.

Opportunity Cost

The expense associated with foregoing the next most favorable option when a choice is made.

Restrictive Policy

Policies or conditions imposed by lending institutions or governments that limit certain activities or operations to reduce risk.

Just-in-time

A production strategy that aims to reduce in-process inventory and associated carrying costs by producing goods only as they are needed in the production process.