Use the Following Information for Questions

question 125

Multiple Choice

Use the following information for questions
Livanos, Inc.reports all its sales on credit, and pays operating costs in the month incurred.Amounts for 2012 are:

-Customer amounts on account are collected 70% in the month of sale and 30% in the following month.
-Cost of goods sold is 60% of sales.
-Livanos purchases and pays for merchandise 40% in the month of acquisition and 60% in the following month.
-Operating expenses are: Salaries, $50,000; Depreciation, $12,000; Rent, $15,000; and Utilities, $14,000;
-Accounts payable is used only for inventory acquisitions.
-How much is Livanos' May 30, 2012 budgeted Accounts Receivable?

• A)$320,000
• B)$96,000
• C)$224,000
• D)$311,000

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Definitions:

Stroop Task

A psychological test of attention and interference where participants must say the color of the word being displayed, which can be incongruent with the word's meaning.

Phonemes

The smallest unit of sound in a language that can distinguish one word from another in a given language.

Morphemes

The smallest meaningful units of language.

Stroop Effect

A cognitive phenomenon demonstrating the interference in reaction time when the color of words on a test and the words themselves have different meanings.