Practice
Check your answer
Choose a response, then check the answer and explanation.
Revenue for the year is 940,000. Accounts receivable were 76,000 at the start of the year and 103,000 at the end. All sales are on credit and nothing was written off.
The receivable balance is the bridge between what a company earned and what it collected. A rising balance means revenue outran cash, and the gap is exactly the change in the account.