An Accounts Receivable Ledger Is

question 3

Multiple Choice

An Accounts Receivable ledger is

• A) A subsidiary ledger that contains an account for each credit customer
• B) A list of the balances of all the accounts in the Accounts Receivable ledger that is added to show the total amount of accounts receivable outstanding
• C) A book of original entry that is designed and used for recording only a specified type of transaction
• D) The ledger that contains the financial statement accounts of a business
• E) A subsidiary ledger that contains a separate account for each party that grants credit on account to the entity

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Definitions:

Transactional Motive

relates to the need to hold cash for the purpose of conducting day-to-day transactions.

Precautionary Motive

The desire to hold cash or liquid assets to guard against unexpected events and emergencies, influencing how individuals and firms manage their finances.

Speculative Motive

The speculative motive is the desire to hold cash or other assets with the expectation of making a profit from fluctuations in their price or value.

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.