ABC Corporation began operations on January 1st of this year with a cash balance of $250,000. ABC
had sales of $200,000 for the month of January, all on credit. ABC allows its customers 30 days to
pay.
ABC's expenses for January equal $150,000, and ABC's ending balance in accounts payable at
January 31st is $50,000. In its cash budget for January, ABC's ending cash balance should be equal
to
A) $200,000.
B) $150,000.
C) $300,000 because of GAAP accrual accounting rules.
D) $100,000.
B
You might also like to view...
Define rites of passage. Describe the three rites of passage phases. Give at least two rites of passage examples
What will be an ideal response?
Holistic marketing incorporates ________, an understanding of broader concerns in the ethical, environmental, legal, and social context of marketing activities
A) internal marketing B) cultural marketing C) social responsibility marketing D) relationship marketing E) integrated marketing
When forming an opinion on special purpose financial statements, the auditor should evaluate whether the financial statements include a summary of significant accounting policies
a. True b. False Indicate whether the statement is true or false
Sampling is based upon judgment or convenience in a _____
a. probability (random) sample b. nonprobability sample c. telephone survey d. simulation