If Credit Sales for the Year Are $120,000 and the Accounts

question 3

Multiple Choice

If credit sales for the year are $120,000 and the accounts receivable balance has increased by $10,500 over the year, how much cash was received from accounts receivable during the year?

• A)$130,500.
• B)$109,500.
• C)$120,000.
• D)$10,500.

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Definitions:

Unsystematic Risk

The risk associated with a particular company or industry, which can be mitigated through diversification.

Diversification

The strategy of spreading investments among various financial assets to reduce risk.

Probability Distribution

A mathematical function that outlines every potential value and their probabilities that a random variable might assume across a specified interval.

Statistical Representation

The use of graphical or numerical methods to display and summarize data, making it easier to understand and interpret.