Odom Company Compiled the Following Financial Information as of December

question 88

Multiple Choice

Odom Company compiled the following financial information as of December 31, 2020: $\begin{array}{lr}\text { Revenues } & \$ 840,000 \\\text { Owner's Capital }(1 / 1 / 20) & 170,000 \\\text { Equipment } & 330,000 \\\text { Expenses } & 740,000 \\\text { Cash } & 40,000 \\\text { Owner's Drawings } & 50,000 \\\text { Supplies } & 20,000 \\\text { Sales Tax Payable } & 10,000 \\\text { Accounts payable } & 50,000 \\\text { Notes payable } & 200,000 \\\text { Accounts receivable } & 90,000\end{array}$ Odom's assets on December 31, 2020 are

• A) $150,000.
• B) $370,000.
• C) $390,000.
• D) $480,000.

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Definitions:

Scenario Planning

A strategic planning method used to create and analyze different future scenarios to aid decision-making under uncertainty.

Contingency Planning

The process of preparing for unexpected events by developing strategies to mitigate their potential impact on operations.

Future States

Future States refer to the potential conditions or scenarios that an organization, system, or individual could experience in the future, considering various planning and strategy approaches.

Zero-based Budget

A budgeting technique where all expenses must be justified for each new period, starting from a "zero base," rather than basing budgets on the previous year's expenditures.