Which of the Following Is True Regarding the Open Item

question 39

Multiple Choice

Which of the following is true regarding the open item method of accounting for accounts receivable?

• A) Payments are applied to the outstanding balance rather than to particular invoices.
• B) Invoice records remain in the open invoice file until payment is received.
• C) The open invoice file is archived at the end of the period.
• D) No attempt is made to match individual payments and invoices.

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Definitions:

Compound Propositions

Statements formed by combining two or more propositions with logical connectives, such as "and," "or," "if...then."

Categorical Propositions

Statements in logic that relate two categories or classes of things in an affirmative or negative manner.

Disjunctive

Pertaining to a logical relation that holds between two statements if at least one of them is true, most commonly represented by the "or" connective.

Hypothetical

Pertaining to a supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation or as a suggested point of argument.