The Total of the Individual Account Balances in the Accounts

question 18

Multiple Choice

The total of the individual account balances in the accounts receivable master file equals the:

• A) balance of the sales account in the general ledger.
• B) balance of the accounts receivable account in the general ledger.
• C) total sales less the total cash received for the period.
• D) total sales for the period.

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Definitions:

Centralized Business Organization

A management structure where decision-making authority is concentrated at the top levels of the organization, with few people responsible for making decisions and setting policies.

Major Planning

Major planning involves the development of comprehensive strategies and objectives to guide an organization or project towards achieving its long-term goals.

Cost Center

A decentralized unit in which the department or division manager has responsibility for the control of costs incurred and the authority to make decisions that affect these costs.

Revenues

Increases in owner’s equity as a result of providing services or selling goods to customers.