If the Beginning Balance in Accounts Receivable Is $11,000 and the Ending

question 85

True/False

If the beginning balance in Accounts Receivable is $11,000 and the ending balance is $9,000, then credit sales must have exceeded collections on account.

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Definitions:

Unearned Revenues

Funds received by a company for goods or services that have not yet been delivered or rendered, considered a liability until the product or service is provided to the customer.

Liabilities

Liabilities that a business must settle in the future, representing the financial debts owed to external parties.

Prepaid Expenses

Costs that have been paid in advance for goods or services to be received in the future.

Unearned Revenues

Money received by a company for goods or services that have not yet been provided to the customer.