Asked by Facienne Guerlanda on Jul 07, 2024
Verified
As long as a company accurately records total credit sales information,it is not necessary to have separate accounts for specific customers.
Credit Sales
refers to sales in which the buyer is permitted to pay at a later date, commonly used in business to business transactions.
Specific Customers
Refers to the particular group or segment of customers targeted by a business for its products or services.
- Gain insight into the principles and significance of controlling accounts receivable and how it affects liquidity management.
Verified Answer
AJ
Ashlyn JosaphatJul 12, 2024
Final Answer :
False
Explanation :
Separate accounts for specific customers are necessary for tracking individual balances, managing credit risk, and providing detailed transaction history, which cannot be achieved by only recording total credit sales.
Learning Objectives
- Gain insight into the principles and significance of controlling accounts receivable and how it affects liquidity management.
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