In the First Month of Operations for Gallowsbird Industries, the Total

question 76

Multiple Choice

In the first month of operations for Gallowsbird Industries, the total of the debit entries to the cash account amounted to $36,000 ($16,000 investment by stockholders and revenues of $20,000) .The total of the credit entries to the cash account amounted to $22,000 (purchase of equipment $8,000 and payment of expenses $14,000) .At the end of the month, the cash account has a(n)

• A)$6,000 credit balance.
• B)$6,000 debit balance.
• C)$14,000 debit balance.
• D)$14,000 credit balance.

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Definitions:

Incentive Compensation

A form of payment designed to reward employees for achieving specific performance targets or objectives.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Strategic Initiatives

Major actions or programs undertaken by an organization to achieve long-term objectives and competitive advantage.

Internal Processes Perspective

An angle of the Balanced Scorecard framework focusing on optimizing operations and production processes to meet strategic goals.