Given the Data Below for a Firm in Its First

question 46

Multiple Choice

Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting. $$\begin{array} { l r } \text { Revenue earned } & \$ 16,000 \\\text { Accounts receivable } & 3,000 \\\text { Expenses incurred } & 7,250 \\\text { Accounts payable (related to expenses) } & 750 \\\text { Supplies purchased with cash } & 1,800\end{array}$$

• A) $8,750
• B) $11,000
• C) $6,500
• D) $9,200

Learn to calculate and understand the significance of liquidity ratios including current and quick ratios.

Understand the relationship between financial management ratios and company operational performance including asset, debt, and profitability management.

Recognize the importance of maintaining adequate levels of liquidity and asset management for operational efficiency.

Evaluate the impact of financial ratios on company decision-making and performance assessment.

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Definitions:

Nursing Diagnosis

A clinical judgment about individual, family, or community responses to actual and potential health problems/life processes.

Tobacco Use

The act of smoking or using tobacco products, which can lead to a range of health issues, including cancer and heart disease.

Cigarette Smoking

The act of inhaling and exhaling the smoke of tobacco or a drug, which is known to have harmful health effects, including cancer and cardiovascular diseases.

Theory of Planned Behavior (TPB)

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place.