The Accounts Receivable Subsidiary Ledger Shows the Following Balances on 31

question 18

Multiple Choice

The accounts receivable subsidiary ledger shows the following balances on 31 January 2019. The balance in the accounts receivable control account at this date is:
(Assume recording and balancing of accounts payable records are up to date.)
$\bullet$ Barry Ltd $2 875
$\bullet$ Roberts Ltd $8 113
$\bullet$ Symes Ltd $3 499

• A) $0
• B) $14 487 Dr
• C) $14 487 Cr
• D) Cannot be calculated from the information given

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales over the short term, such as rent, salaries, and insurance.

Break-even Point

The break-even point is the sales level at which total revenues equal total costs, resulting in neither profit nor loss.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, showing the impact of fixed costs on earnings.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from gross profit, not including non-operating income and expenses, interest, and taxes.