Outlaw, Inc

question 88

Multiple Choice

Outlaw, Inc. began the year with $279,000 in Accounts Receivable and ended the year with $232,700 in Accounts Receivable. Sales for the year were $3,870,000. The cash collected from customers during the year amounted to:

• A) $4,149,000.
• B) $4,102,700.
• C) $3,916,300.
• D) $3,823,700.

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Definitions:

Liabilities

Liabilities or amounts due by a corporation to third parties or people outside the organization.

Accrued Expense

An accounting term referring to expenses that have been incurred but not yet paid, representing liabilities on a company's balance sheet.

Income Taxes

Taxes levied by the government on income generated by businesses and individuals within their jurisdiction.

Accounting Period

A specific period of time used for financial reporting, typically a year or quarter, during which a company's financial performance is calculated.