ABC Company Began the Month with a Balance of $70,000 $$85,000 from This Information, It Can Be Determined That the in Accounts

question 172

Multiple Choice

ABC Company began the month with a balance of $70,000 in Accounts Receivable. An analysis of the account determined that sales on account for the month totaled $110,000. At the end of the month, the balance in Accounts Receivable was $$85,000. From this information, it can be determined that the ABC Company had collections from customers on account of:

• A) $15,000.
• B) $45,000.
• C) $95,000.
• D) $115,000.

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Definitions:

Uncovered Interest Parity

An economic theory that states the difference in interest rates between two countries equals the expected change in exchange rates between those countries' currencies.

Exchange Rate

The price of one country's currency expressed in another country's currency.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.