Nelson Company Began Operations on December 1, Year 1

question 87

Multiple Choice

Nelson Company began operations on December 1, Year 1. The following transactions and adjustments were recorded in December and posted to the company's ledger accounts:1) Acquired $9,000 cash from the issue of common stock to its stockholders.2) Provided services on account for $7,500.3) Paid $4,500 cash for land.4) Owed $3,000 of salaries expenses to employees for work done in December that will be paid during January.5) Purchased $900 of supplies on account to be used in January.6) Collected $3,900 from customers. What is the total of the debit account balances that will be reported on the company's adjusted trial balance at December 31, Year 1?

• A)$12,000
• B)$20,400
• C)$6,900
• D)$28,800

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Definitions:

Process Strategy

A company's approach to transforming resources into goods and services.

Transformation Strategy

A comprehensive approach a company adopts to change its business processes and operations in order to achieve specific goals.

Efficiency

The ratio of the output produced to the input used in the production process, indicating how well resources are utilized.

Flexibility

The ability of a company to adapt quickly to changes in the market environment, production demands, or customer needs.