The Opening and Closing Balances of Accounts Receivable Were $100

question 19

Multiple Choice

The opening and closing balances of accounts receivable were $100 000 and $170 000 respectively.Sales on credit were $200 000.What was the amount of cash received from customers?

• A) $130 000
• B) $200 000
• C) $270 000
• D) $300 000.

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Definitions:

Sole Supplier

A single source from which a company purchases goods or services, often leading to increased negotiation power for the supplier but potential risks for the buyer.

Cash Conversion Cycle

A metric that measures the time span between a company's outlay of capital for supplies and receiving payment from the sale of those goods or services.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Inventory Conversion Period

The average time it takes for a company to turn its inventory into sales.