The Accounts Receivable Account of Nuptials Inc $$\begin{array} { | r | r | } \hline { \text { Accounts Receivable } } \\\hline 26,000 & 3,500 \\5,000 & \\& \\\hline & \\\hline\end{array}$$

question 51

Multiple Choice

The Accounts Receivable account of Nuptials Inc.is shown below. $$\begin{array} { | r | r | } \hline { \text { Accounts Receivable } } \\\hline 26,000 & 3,500 \\5,000 & \\& \\\hline & \\\hline\end{array}$$ Calculate the ending balance of the account.

• A)$33,500,debit
• B)$31,000,debit
• C)$3,500,credit
• D)$27,500,debit

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Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net tangible assets, representing future economic benefits.

Fair Value

An estimate of the price at which an asset could be bought or sold, or a liability settled, in an orderly transaction between market participants at the measurement date.

Equity Method

An accounting technique used for recording investments in which the investor has significant influence but not total control over the investee.

Deferred Income Tax

An accounting concept that represents the difference between taxes payable and tax expense due to timing differences in recognizing revenues and expenses.