On Which of the Four Major Financial Statements Would You

question 20

Multiple Choice

On which of the four major financial statements would you find the common stock and paid-in surplus?

• A)Balance sheet
• B)Income statement
• C)Statement of cash flows
• D)Statement of retained earnings

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Definitions:

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Sales

The total revenue a company generates from selling goods, services, or both, within a specific period.

Average Collection Period

The average amount of time it takes for a company to receive payments owed by its customers for goods or services sold on credit.