AICPA Exam CPA-Business Topic 1 Question 28 Discussion

Actual exam question for AICPA's CPA Business Environment and Concepts exam

Question #: 28
Topic #: 1

[All CPA Business Environment and Concepts Questions]

A firm averages $4,000 in sales per day and is paid, on an average, within 30 days of the sale. After they receive their invoice, 55 percent of the customers pay by check, while the remaining 45 percent pay by credit card. Approximately how much would the company show in accounts receivable on its balance sheet on any given date?

A$120,000

B$48,000

C$54,000

D$21,600

Show Suggested Answer

Suggested Answer: A

Choice 'a' is correct. $120,000 accounts receivable approximation. There is no effect on total A/R based on how (i.e., check or credit card) the customers actually pay their A/R.

by Haydee at May 07, 2022, 07:56 PM

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