Calculate the Value of Accounts Receivable, Given the Following Information

question 26

Multiple Choice

Calculate the value of Accounts Receivable, given the following information:

• A)$10,500
• B)$11,500
• C)$12,500
• D)$13,500

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Definitions:

Operating Activities

Activities that are directly related to the day-to-day operations of a business, including revenue generation and expense incurrence.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Net Income

A company's overall income after deducting all expenses and taxation from gross revenue.

Accumulated Depreciation

The total depreciation amount that has been charged to expense a fixed asset over its useful life to reflect wear and tear, aging, or obsolescence.