The Balance in the Accounts Receivable Account Is $2,200 Debit

question 74

True/False

The balance in the Accounts Receivable account is $2,200 debit.Therefore,the balances in the subsidiary ledger should be $2,200.

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Definitions:

FIFO Method

A method of inventory costing that assumes the first goods purchased are the first goods sold, affecting the cost of goods sold and ending inventory valuation.

LIFO Method

An inventory management and valuation approach where the last items placed in inventory are the first ones sold.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to ensure financial statements are consistent and transparent.

IFRS

International Financial Reporting Standards - a set of accounting guidelines that provide the basis for cross-border financial reporting.