One Type of Accounts Receivable System Is Balance-Forward, the Other

question 114

Multiple Choice

One type of accounts receivable system is balance-forward, the other is:

• A) debit card system
• B) Automated Clearing House system
• C) Electronic Funds Transfer system
• D) open-item system

---

Definitions:

Investing Section

Part of a company's cash flow statement that shows the cash spent on or generated from investment activities, such as buying or selling assets.

Bonds

Fixed income investments representing a loan made by an investor to a borrower, typically corporate or governmental.

Cash Outflow

Cash Outflow refers to the movement of money out of a business, including expenses, payments to creditors, or investments, which impacts the company's cash balance.

Financing Activities

Comprises transactions that result in changes in the size and composition of the equity capital or borrowings of an entity. Examples include issuing bonds, repaying bank loans, and paying dividends.