In a Balance-Forward Accounts Receivable System, the Customer Statements Display

question 124

True/False

In a balance-forward accounts receivable system, the customer statements display previous balance, payments, and balance forward to which is added any new charges to derive the total balance due.

---

Definitions:

Strict Product Liability

holds manufacturers, distributors, and sellers liable for damages caused by defects in their products, regardless of negligence or fault.

Plaintiff

An individual or entity that initiates a lawsuit or legal action against another party, known as the defendant.

Defective

Pertains to a flaw or deficiency in a product that makes it unsafe or unfit for its intended use.

Manufacturers

Entities engaged in the conversion of raw materials or components into finished goods for sale.