If Customers Owe $120 000 at the Beginning of the Year

question 27

Multiple Choice

If customers owe $120 000 at the beginning of the year and $95 000 at the end of the year,and credit sales total $250 000 for the year,the cash received from customers during the year is:

• A) $120 000
• B) $370 000
• C) $275 000
• D) $155 000

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Definitions:

Cost Formula

An equation used to calculate the total costs involved in the production of goods or services, incorporating both fixed and variable components.

Flexible Budget

An adaptable budget that shifts based on variations in activity or volume.

Cleaning Equipment

Tools, appliances, or devices used for cleaning purposes, ranging from simple manual tools to complex machinery.

Cost Formula

A mathematical equation or method used to compute the total costs associated with the production or provision of goods or services.