{"id":44641,"date":"2024-04-15T21:46:37","date_gmt":"2024-04-15T21:46:37","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=44641"},"modified":"2024-04-15T21:46:37","modified_gmt":"2024-04-15T21:46:37","slug":"if-the-closing-balance-of-receivables-is-less-than-the-opening-balance-for-a-month-then-which-one-is-true-out-of","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-the-closing-balance-of-receivables-is-less-than-the-opening-balance-for-a-month-then-which-one-is-true-out-of\/","title":{"rendered":"If the closing balance of receivables is less than the opening balance for a month then which one is true out of:"},"content":{"rendered":"

[amp_mcq option1=”Collections > Current Purchases” option2=”Collections > Current Sales” option3=”Collections < Current Purchases\" option4=\"Collections < Current Sales\" correct=\"option3\"]<\/p>\n

The correct answer is: C. Collections < Current Sales<\/strong><\/p>\n

Collections are the amounts of money that a company receives from its customers for goods or services that have been sold. Current sales are the total amount of revenue that a company has generated from its sales during a specific period of time.<\/p>\n

If the closing balance of receivables is less than the opening balance for a month, then this means that the company has collected more money from its customers than it has sold to them during that month. This can happen for a number of reasons, such as if the company has a large number of customers who pay their bills late, or if the company has offered discounts or promotions that have resulted in customers paying their bills early.<\/p>\n

In any case, a lower closing balance of receivables than the opening balance indicates that the company is doing a good job of collecting its money from customers, which is a positive sign for the company’s financial health.<\/p>\n

Here is a brief explanation of each option:<\/p>\n