The ending balance of accounts receivable was $69,000. Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $354,000. Sales reported on the income statement were $378,000. Based on this information, the beginning balance in accounts receivable was:
A. $45,000
B. $94,000
C. $93,000
D. $24,000
Answer: A
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A firm's core competency has applications only in the specific market in which the firm operates
Indicate whether the statement is true or false
Which of the following is not true about budgeting?
a. It is a formal method of detailed financial planning. b. It is used to help a company reach long-term and short-term objectives. c. It aids in the efficient use of resources. d. All of the above are true.
The assumption that allows accountants to accept some inaccuracy, because of incomplete information about the future, in exchange for more timely reporting is:
a. conservatism. b. time period. c. business entity. d. materiality. e. realization.
Island Breeze Company designs and makes desk, window, and ceiling fans. In a product liability suit based on negligence, Island Breeze could be liable for vio-lating its duty of care with respect to all of the following except A) the design of the fans
B) ?the production process used to make the fans. C) the warnings on the labels of the fans. D) a consumer's unforeseeable misuse of a fan.