A Firm Has an ACP of 38 Days and Its

question 51

Multiple Choice

A firm has an ACP of 38 days and its annual sales are $5.3 million. What is its account receivable balance?

• A) $551,781
• B) $619,304
• C) $692,098
• D) $759,021

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Definitions:

Post-Closing Trial Balance

A list of all account balances after closing entries are made, used to check the equality of debits and credits and prepare for the next accounting period.

Correcting Entries

Journal entries made to amend previously recorded transactions that were entered incorrectly.

Adjusting Entries

Journal entries made in preparation for financial statements to allocate income and expenses to the period in which they actually occurred.

Balance Sheet Account

An account found on the balance sheet which can include assets, liabilities, and equity accounts.