Consider the Following Information Taken from the Cash Account

question 88

Multiple Choice

Consider the following information taken from the cash account.Assume cash payments were 80% of collections.How much was the beginning balance of the cash account?

• A)$57,200
• B)$92,300
• C)$103,350
• D)$35,100

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Definitions:

Short-Term Bank Loan

A loan obtained from a bank that has a short repayment period, typically less than one year.

Best Course of Action

The most suitable or advantageous strategy or decision to take in a given situation.

Annual Rate

The interest rate for a whole year, as opposed to a rate for a shorter period.

Terms of Payment

The conditions under which a seller will complete a sale, often specifying the period allowed to a buyer to pay off the amount due.