At the Beginning of January of the Current Year,Little Mikey's

question 169

Multiple Choice

At the beginning of January of the current year,Little Mikey's Catering ledger reflected a normal balance of $52,000 for accounts receivable.During January,the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500.Additionally,during January one customer paid Mikey $5,000 for services to be provided in the future.At the end of January,the balance in the accounts receivable account should be:

• A)$54,700.
• B)$49,700.
• C)$2,300.
• D)$54,300.
• E)$49,300.

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in the time value of money calculations.

Growth Opportunities

Potential situations or initiatives that could lead to business expansion, including new markets, products, or services.

Expected Rate

The anticipated return on an investment over a specific period, often based on historical data and analysis of market conditions.

Constant-Growth Rate

A growth rate applied continuously and at a constant percentage, often used in the dividend discount model to value stocks.