Gitis,IncUses the Direct Method to Prepare Its Statement of Cash

question 11

Multiple Choice

Gitis,Inc.uses the direct method to prepare its statement of cash flows.Use the following information reported for 2017:
Sales Revenue,$40,000
Interest Revenue,$700
Accounts Receivable,beginning balance,$13,200
Accounts Receivable,ending balance,$28,000
There were no amounts reported for Interest Receivable.
Compute the total cash receipts.

• A)$28,000
• B)$53,200
• C)$25,900
• D)$13,200

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Definitions:

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding conflicting beliefs or attitudes, leading to an alteration in one of the beliefs or attitudes to reduce the discomfort.

Reducing Techniques

Strategies or methods used to decrease anxiety, stress, or other negative emotional states.

Bem's Self-Perception Theory

A psychological theory suggesting that people often infer their own attitudes and feelings from observing their behavior and the context in which it occurs, rather than initially recognizing inner attributes as the cause.

State of Tension

A psychological and physical state resulting from the awareness of a discrepancy between the current state and a desired goal, leading to motivation to resolve the discrepancy.