A Company Completed the Following Transactions During the Month of October

question 49

Multiple Choice

A company completed the following transactions during the month of October: I. Purchased office supplies on account, $4800.
II. Provided services for cash, $22,000.
III. Provided services on account, $12,000.
IV. Collected cash from a customer on account, $7400.
V. Paid the monthly rent of $18,000.
What was the company's net income for the month?

• A)$12,000
• B)$16,000
• C)$34,000
• D)$52,000

---

Definitions:

Lean Environment

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, focusing on adding value and reducing non-value activities.

Raw Materials

Basic materials used in the production process, not yet transformed into final products.

Traditional Environment

A conventional business or work setting that adheres to long-established methods or practices.

Pull Manufacturing

A production method where production is based on customer demand rather than forecasting, utilizing techniques to only produce what is needed when it's needed.