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SIZIF [17.4K]
3 years ago
15

If ending accounts receivable exceeds the beginning accounts receivable Group of answer choices cash collections during the peri

od exceed the amount of revenue recognized no cash was collected during the period net income for the period is less than the amount of cash-basis income cash collections during the year are less than the amount of revenue recognized
Business
1 answer:
sukhopar [10]3 years ago
4 0

Answer:

no cash was collected during the period

or

cash collections during the year are less than the amount of revenue recognized

Explanation:

For example if we had Accounts receivable beginning balance $ 250,000 and Sales of $ 500,000 are made on accounts then the Total  Accounts receivable will be $ 750,000.

But out of the $ 500,000 sales only $300,00 cash is collected and the remaining  $ 200,000 is still in the Accounts receivable balance so the ending Accounts receivable balance will be $ 250,000 + $200,000 = $ 450,000 which will be greater than beginning Accounts receivable balance.

So there are two possibilities either  cash collections during the year are less than the amount of revenue recognized.

or

no cash was collected during the period.

Similarly it cannot be choice no 1 : collections during the period exceed the amount of revenue recognized

Because if more cash is collected then ending account receivable balance would be less than the beginning account receivable balance.

Choice no 3 is also wrong if cash collections are more than the ending accounts  receivable balance would be less

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Explanation:

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3 years ago
A bank reconciliation proves the accuracy of the depositor’s and the bank’s records. The bank statement balance is adjusted for
Sedbober [7]

Answer:

book error

Interest earned on checking account

collections of accounts receivable by the bank

Explanation:

The Bank reconciliation refers to the rectifying of the statement that works with the bank statement balance and the passbook balance The purpose is to equate these both statements to allow the company to work efficiently and efficient manner

As There are different transactions i.e bank error, NSF check, deposit in transit , etc that depend upon which type of statement it is due to this, the balance of the bank statement and the balance of the cash statement do not match. We modify the transactions accordingly so that these statements should be matched with each other

In order to adjust the book balance we required three items i.e book error, interest earned on checking account and the account receivables collection done by the bank

3 0
3 years ago
Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchase
wlad13 [49]

Answer:

Explanation:

GDP = C + I + G + NX

Where, C = Consumption, I - Investment, G - Government Purchases, NX - Net Exports

GDP = 11.00 + 1.20 + 3.10 + (1.20 - 2.32)

       = 14.18 trillions of Rupees

6 0
3 years ago
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $130,300 Advertising e
Misha Larkins [42]

Answer and Explanation:

The computation is shown below

a. The cost of goods manufactured is

Materials used in product $130,300

Labor costs of assembly-line workers 116,100

Depreciation on plant 62,500

Property taxes on plant 24,300

Factory supplies used 34,000

Work in process inventory at January 1 $14,400

Less: Work in process inventory at december 1 -$17,600

Cost of goods manufactured $364,000

b. The cost of goods sold is

= Opening finished goods + cost of goods manufactured - ending finished goods

= $61,100 + $364,000 - $48,500

= $376,600

8 0
3 years ago
December 31 Total assets Total liabilities
Neporo4naja [7]

Answer:

Net Income or Loss : a. 2019 = $53000  ; b. 2020 = $4000 loss ; c. 2021 = $43000

Explanation:

Assets - Liabilities = Capital  (Closing/Opening)

458000 - 317000 = 141000 (2019 Closing Capital)

Profit = Closing Capital - Opening Capital + Drawings - Additional Capital

A.  2019 Opening Capital = 100000 (Given)

2019 Closing Capital = A - L = 458000 - 317000 = 141000

2019 Profit = CC - OC - D + AC = 141000 - 100000 + 12000 =  53000

B. 2020 opening capital = 2019 Closing Capital = 141000

2020 closing capital = A - L = 538000 - 367000 = 171000

2020 Profit =  CC - OC + D - AC = 171000 - 141000 - 34000 = 4000 Loss

C. 2021 opening capital = 2020 closing capital = 171000

2021 closing capital = A - L = 668000 - 467000 = 201000

2021 Profit = CC - OC + D - AC = 201000 - 171000 + 25000 - 12000 = 43000

6 0
3 years ago
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