What Is the Rule for Converting Credit Sales to Cash

question 27

Multiple Choice

What is the rule for converting credit sales to cash received from debtors?

• A)Income - Accounts receivable at the beginning + Accounts receivable at the end = Cash received
• B)Income + Accounts receivable at the beginning - Accounts receivable at the end = Cash received
• C)Income + or - Accounts receivable at the beginning + or - Accounts receivable at the end = Cash received
• D)None of the above

---

Definitions:

Tariff

a tax imposed on imported goods and services, intended to make foreign commodities less price-competitive than domestic goods.

Imports

Imports are goods and services bought by residents of a country from another country, which results in an outflow of currency to foreign markets.

Domestic Consumers

Individuals or entities within a country that purchase goods and services for personal use.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another.