The Ending Balance of Accounts Receivable Was $69,000

question 75

Multiple Choice

The ending balance of accounts receivable was $69,000. Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $354,000. Sales reported on the income statement were $378,000. Based on this information, the beginning balance in accounts receivable was:

• A) $93,000
• B) $24,000
• C) $94,000
• D) $45,000

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Definitions:

January Production

January production refers to the measure of output or the total amount of goods produced by a company in the month of January.

Inventory Management

The process of ordering, storing, tracking, and controlling inventory to ensure the right quantity of stock is available when needed.

Sales Forecast

An estimate of sales for a future period, often used for planning and managing business operations.

Master Budget

A comprehensive financial planning document that consolidates all individual budgets within an organization, projecting its overall financial activities.