The Balance in Accounts Receivable at the Beginning of 2018

question 27

Multiple Choice

The balance in accounts receivable at the beginning of 2018 was $300. During 2018, $1,600 of credit sales were recorded. If the ending balance in accounts receivable was $250 and $100 in accounts receivable were written off during the year, the amount of cash collected from customers during 2018 was:

• A) $1,600.
• B) $1,650.
• C) $1,550.
• D) $1,900.

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Definitions:

Debt Financing

Raising funds for a company by selling debt instruments to individuals or institutional investors.

Liquidity

This concept describes how easily an asset or security can be converted into ready cash without affecting its market price.

Asset Management

The approach to build, operate, preserve, and trade assets in a financially efficient manner.

Debt Management

The process of overseeing and handling the debt obligations of an individual or organization, including repayment strategies and structuring.