Question

A company using a centralized database approach might not maintain a relational table for ACCOUNTS RECEIVABLE. Rather, accounts receivable balances at any point in time could be computed as the difference between the relations for which of the following continuous events?

a. SHIPMENTS and SALES_INVOICES
b. SALES_INVOICES and CASH_RECEIPTS
c. SHIPMENTS and CASH_RECEIPTS
d. CUSTOMER and SALES_INVOICES

Answer 1

Accounts receivable are calculated as the difference between the sales invoices (total billed) and cash receipts (cash collected) events. This reflects the amount still owed by customers to the company.

Step-by-step explanation:

A company using a centralized database might calculate the accounts receivable balances at any point in time as the difference between the amounts in the SALES_INVOICES and the amounts in the CASH_RECEIPTS relations.

The correct answer to which continuous events would be used to compute accounts receivable is b. SALES_INVOICES and CASH_RECEIPTS. Sales invoices represent the total amount billed to customers, while cash receipts represent the cash collected from customers. The difference between these two values is the amount still owed by customers, hence the accounts receivable balance,