A Company Reports Net Accounts Receivable of $107,460 on Its

question 68

Multiple Choice

A company reports Net accounts receivable of $107,460 on its December 31,2013 balance sheet.The Allowance for uncollectible accounts has a credit balance of $3,200.What is the balance in Accounts receivable?

• A) $104,260
• B) $107,460
• C) $105,860
• D) $110,660

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Definitions:

Interest Tax Shield

The interest tax shield refers to the reduction in income taxes resulting from deducting interest payments on debt from taxable income.

Corporate Tax Rate

The corporate tax rate is the percentage of a corporation's taxable income that it must pay to the government as taxes.

Debt

A sum of money lent by one party to another, which has to be repaid at a future date, typically with added interest.

Debt Ratio

A ratio that evaluates how much a business relies on debt financing, calculated through the division of the company's total liabilities by its total assets.