In Order to Keep Accurate Records About the Collection of Cash

question 89

True/False

In order to keep accurate records about the collection of cash for a previously written off account,collection of cash for a previously written off account,a business should re-establish the Accounts Receivable by debiting the receivable account.

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Definitions:

Unadjusted Trial Balance

A financial statement listing all the accounts and their balances before any adjustments are made, used for internal purposes to check the balance of debits and credits.

Depreciation Expense

The allocated amount of the cost of an asset over its useful life, used to account for declines in value.

Accrued Revenues

Revenues that have been earned but not yet received in cash or recorded by the entity, representing assets on the balance sheet.

Unearned Rent

Income received by a landlord for a period of time that has not yet passed; considered a liability until earned.