Johnson, Inc

question 48

Multiple Choice

Johnson, Inc. has just ended the calendar year making a sale in the amount of $10,000 of merchandise purchased during the year at a total cost of $7,000. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. The net profit and cash flow for the year are

• A) $3,000 and $10,000 respectively.
• B) $7,000 and -$3,000 respectively.
• C) $3,000 and -$7,000 respectively.
• D) $3,000 and $7,000 respectively.

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Definitions:

Poverty

A state or condition in which an individual or community lacks the financial resources and essentials for a minimum standard of living.

Darity And Myers

Refers to William Darity Jr. and Samuel L. Myers, Jr., economists known for their work on racial disparities in economic outcomes.

Economy

The large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Marginal

Refers to the change or difference in an economic variable when altering another variable by a small or marginal amount.