Dakota Company Has Four Customers: A,B,C,and D

question 68

Multiple Choice

Dakota Company has four customers: A,B,C,and D.The accounts receivable balance in the general ledger is $9,083 and the accounts receivable subsidiary ledger of customers A,C,and D have $1,746,$3,296,and $3,940,respectively.Calculate the amount in the accounts receivable subsidiary ledger account of customer B.

• A) $8,982
• B) $1,847
• C) $1,291
• D) $101

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Definitions:

Straight-Line Depreciation

An arrangement for apportioning the financial burden of a physical investment throughout its active life in equal yearly disbursements.

Accounting Rate of Return

A financial ratio used to measure the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

After-Tax Net Income

The amount of money a company earns in a given period after all taxes have been deducted from gross income.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to assess the profitability of investments.