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:

Pass Along

The act of distributing information or an item from one individual to another, often used in the context of marketing or sharing knowledge.

Authority

The authority or capability to issue commands, make choices, and ensure compliance.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone, often associated with accountability and ethical obligations.

Obligation

A duty or commitment that one is bound to by law, promise, or moral necessity.