The J Dawson, Capital Account Has a Credit Balance of $1,200

question 4

Multiple Choice

The J. Dawson, Capital account has a credit balance of $1,200 before closing entries aremade. If total revenues for the year are $65,200, total expenses $49,800, andwithdrawals are $2,400, what is the ending balance in the J. Dawson, Capital account after all closing entries have been made?

• A)$16,600.
• B)$14,200.
• C)$7,600.
• D)$23,200.
• E)$5,200.

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Definitions:

Miller-Orr Model

The Miller-Orr Model is a financial model used to manage cash flow and determine the optimal balance between holding cash versus short-term investments.

Disbursements

Payments made by a business, often related to operational expenses or loan repayments.

Optimal Average Cash Balance

The ideal level of cash a company seeks to maintain to minimize the costs associated with holding too much or too little cash.

Weekly Interest Rate

Interest calculated and applied on a weekly basis, often referred to in terms of loans or savings.