Partial List of Account Balances at the End of the Year

question 155

Multiple Choice

Partial list of account balances at the end of the year:

-Use the information above to answer the following question.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:

Worker Satisfaction

The level of contentment employees feel towards their job, which can affect motivation, performance, and retention.

Performance

The act of performing; executing or accomplishing something such as tasks or operations, measured against pre-set standards.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials, packaging, and direct labor, which increase as production increases and decrease as production decreases.

Marginal Revenue

The additional income earned from selling one more unit of a good or service, an important concept in pricing and production decisions.