What Happens to the Size (Number of Records) of the Open

question 86

Multiple Choice

What happens to the size (number of records) of the open customer invoice file when it is updated to reflect the customer's payment of an outstanding invoice?

• A) Cannot be determined
• B) Remains the same
• C) Decreases
• D) Increases

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Definitions:

Note Payable

A liability in a formal written promise to pay a specific amount of money at a future date or dates.

Common Stock

Represents an equity ownership in a corporation, giving holders voting rights and a share of the company's profits via dividends.

Cash Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.