Which of the following is an accurate description of the economic events involving Accounts Receivable as documented in the T-Account above?
A) There were more customers paying off balances than there were customers adding to their balances.
B) There were more customers adding to their balances than paying off their balances.
C) The company paid off its debt more than it incurred new debt.
D) The company incurred more debt than it paid off.

Question

Quizplus · Accepted Answer

The T-Account for Accounts Receivable shows the activity related to customer balances. If the balance on the debit side (increases in Accounts Receivable) is greater than the balance on the credit side (decreases in Accounts Receivable), it indicates that more customers are adding to their balances than paying them off.

Which of the Following Is an Accurate Description of the Economic