During 20B, Its Second Year in Operation, Banner Company Delivered

question 44

Multiple Choice

During 20B, its second year in operation, Banner Company delivered goods to customers for which customers paid or promised to pay $5,850,000. Assume all sales were on account and the amount of cash collected from customers was $5,960,000. The amount of trade receivables at the beginning of 20B was $1,200,000. Based on this information, what is the amount of trade receivables that Banner would report at the end of 20B?

• A) $1,310,000.
• B) $5,850,000.
• C) $1,090,000.
• D) $110,000.

---

Definitions:

Poka-Yoke

Literally translated, “foolproof”; it has come to mean a device or technique that ensures the production of a good unit every time.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental changes over time.

Profitability

A measure of the efficiency and effectiveness of a company in generating profits from its operations, indicative of its financial health over time.

Flexible Pricing

A pricing strategy where the price of a product or service can vary based on market conditions, customer demand, or other factors.