A Firm Has Just Ended the Calendar Year Making a Sale

question 6

Multiple Choice

A firm has just ended the calendar year making a sale in the amount of $200,000 of merchandise purchased during the year at a total cost of $150,500. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. One possible problem this firm may face is

• A) low profitability.
• B) inability to receive credit.
• C) insolvency.
• D) high leverage.

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Definitions:

Methylphenidate

A stimulant medication used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy by increasing attention and decreasing impulsiveness and hyperactivity.

Psychodynamic Therapy

A form of depth psychology, focusing on the conscious and unconscious processes in the mind to alleviate psychic tension.

Cognitive-behavioral Therapy

A form of psychological treatment that addresses negative patterns of thought and behavior to improve mental health and well-being.

Attention-deficit/hyperactivity Disorder

A neurodevelopmental disorder characterized by inattention, hyperactivity, and impulsivity that interferes with functioning or development.