A Business Has the Following Transactions

question 109

Multiple Choice

A business has the following transactions:
* The business receives $15,000 cash and issues common stock to stockholders.
* The business purchases $600 of office supplies on account.
* The business purchases $3,000 of furniture on account.
* The business renders services to various clients totaling $15,000 on account.
* The business pays $1,500 for salaries expense and $4,500 for rent expense.
* The business pays $800 to a supplier for the office supplies purchased earlier.
* The business collects $4,000 from one of its clients for services rendered earlier in the month.
At the end of the month,all journal entries are posted to the ledger.Accounts Receivable will appear as which of the following?

• A) Accounts Receivable
• B) Accounts Receivable
• C) Accounts Receivable
• D) Accounts Receivable

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Definitions:

Existing Copier

A copier machine that is currently owned or in use within an organization.

Evaluation

The process of examining and judging something's value, quality, or importance.

Net Working Capital

Net Working Capital is a measure of a company's short-term financial health, calculated as current assets minus current liabilities.

Present Value

The contemporary valuation of future financial inflows or a lump sum, adjusted for a specific rate of return.