For Engle Company, the Balance in Accounts Receivable at the Beginning

question 121

Multiple Choice

For Engle Company, the balance in Accounts Receivable at the beginning of the period was $800. During the period $3,200 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $400, and uncollectible accounts of $200 were written off, the amount of cash inflow from customers that would appear in the operating section of the cash statement would be:

• A) $3,400.
• B) $3,200.
• C) $4,000.
• D) $3,300.

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Definitions:

Business Transactions

Economic events that affect the financial position of a company and can be quantified in monetary terms.

Events

Occurrences or incidents that have significance for the operations, financial performance, or cash flows of an entity.

Common Stock

Equity ownership in a corporation, representing a claim on its dividends and assets.

Equity

The stake or ownership interest shareholders have in a company, represented by their shares of stock.