Florida General Contractor Practice Exam

What prepared document provides current information about the revenue due to a company?

1. Cash flow statement

2. Accounts receivable ledger

3. Revenue recognition statement

4. Budget report

The correct answer is: Accounts receivable ledger

The accounts receivable ledger is the prepared document that provides current information about the revenue due to a company. This ledger details all outstanding invoices and the amounts owed to the company by its customers. By tracking these receivables, a company can clearly see the revenue that is expected to be collected, which is critical for assessing the financial health and cash flow of the business. In contrast, while a cash flow statement summarizes the inflows and outflows of cash over a period, it does not provide a detailed account of specific revenues due. A revenue recognition statement focuses on the principles governing when revenue should be recognized, rather than detailing actual amounts receivable. A budget report outlines projected revenues and expenditures, typically in a future context, rather than current amounts due to the company. Each of these documents serves distinct purposes in financial reporting, but the accounts receivable ledger is specifically designed to track current outstanding revenue.