If an accountant establishes the sales for the month and adds the beginning balance of accounts receivable and subtracts the accounts receivable balance at the end of the month,this would determine
A)cash collections from customers for the month.
B)net income for the month
C)total assets less liabilities for the month.
D)cash payments to vendors for the month.
E)total sales in cash for the month.

Question

Quizplus · Accepted Answer

Subtracting the beginning accounts receivable balance from the sales for the month and then adding the ending accounts receivable balance will give the total amount of money collected from customers during the month, which is the cash collections from customers for the month.

If an Accountant Establishes the Sales for the Month and Adds