A report sent to each customer showing the beginning receivable balance, transactions during the month, and the ending receivable balance is best described as ________.
A)a statement of cash receipts
B)an aging of accounts receivable
C)monthly statements of receivable balances
D)a general ledger receivables report

Question

Quizplus · Accepted Answer

A monthly statement of receivable balances shows the beginning and ending receivable balances for the month, as well as any transactions that occurred during the month. This helps customers keep track of their outstanding balances and ensures that both the customer and the company have the same information regarding the amount owed. A statement of cash receipts, aging of accounts receivable, and general ledger receivables report all provide different types of information and are not as comprehensive as a monthly statement of receivable balances.

A Report Sent to Each Customer Showing the Beginning Receivable