Net Sales + Beginning Accounts Receivables − Closing Accounts Receivables is equal to ___

Cash paid to suppliers

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Cash receipts from customers

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Cash payments to employees

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None of these

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Solution

The correct option is B
Cash receipts from customers

Net Sales + Beginning Accounts Receivable − Ending Accounts Receivable = Cash receipts from customers

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Similar questions

Closing Trade Receivables ₹ 4,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 2,00,000; Revenue from Operations, i.e., Revenue from Operations, i.e., Net Sales ₹ 15,00,000. Calculate Trade Receivables Turnover Ratio

[Hint: 1. Net Credit Sales = Total Sales − Cash Sales

2. Opening Trade Receivables = Closing Trade Receivables − Excess of Closing Trade Receivables over Opening Trade Receivables.]

Q. Closing Trade Receivables ₹ 1,00,000; Cash Sales being 25% of Credit Sales; Excess of Closing Trade Receivables over Opening Trade Receivables ₹ 40,000; Revenue from Operations, i.e., Net Sales ₹ 6,00,000. Calculate Trade Receivables Turnover Ratio.

Q. Calculate Trade Receivables Turnover Ratio in each of the following alternative cases:
Case 1: Net Credit Sales ₹4,00,000; Average Trade Receivables ₹1,00,000.
Case 2: Revenue from Operations (Net Sales) ₹30,00,000; Cash Revenue from Operations, i.e., Cash Sales ₹6,00,000; Opening Trade Receivables ₹2,00,000; Closing Trade Receivables ₹6,00,000.
Case 3: Cost of Revenue from Operations or Cost of Goods Sold ₹3,00,000; Gross Profit on Cost 25%; Cash Sales 20% of Total Sales; Opening Trade Receivables ₹50,000; Closing Trade Receivables ₹1,00,000.
Case 4: Cost of Revenue from Operations or Cost of Goods Sold ₹4,50,000; Gross Profit on Sales 20%; Cash Sales 25% of Net Credit Sales, Opening Trade Receivables ₹90,000; Closing Trade Receivables ₹60,000.

Q. The ending balance of the accounts receivable account was Rs 12,000. Services billed to customers for the period were Rs 21,500 and collection on account from customers was Rs 23,600. The beginning balance of accounts receivable was __________ .

Q. The ending balance of the accounts receivable account was

R s . 1, 20, 000

. Services billed to customers for the period were

R s . 2, 15, 000

and collection on account from customers was

R s . 2, 36, 000

. Thee beginning balance of account receivable was__________.

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Net Sales + Beginning Accounts Receivables − Closing Accounts Receivables is equal to ___

The correct option is B Cash receipts from customers Net Sales + Beginning Accounts Receivable − Ending Accounts Receivable = Cash receipts from customers

The correct option is B
Cash receipts from customers

Net Sales + Beginning Accounts Receivable − Ending Accounts Receivable = Cash receipts from customers