Orin, an Employee of Plumbing LLC, Makes a Substantial Mathematical

question 56

Multiple Choice

Orin, an employee of Plumbing LLC, makes a substantial mathematical mistake in totaling the estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently, Plumbing's bid is significantly low. Any contract with Quality Built that includes the mistake may be rescinded

• A)if Quality Built knew or should have known of the mistake.
• B)if Orin's supervisor did not know of the mistake.
• C)if Plumbing knew or should have known of the mistake.
• D)under no circumstances.

Understand key financial metrics and their calculations related to working capital management.

Calculate and interpret inventory turnover and understand its implications on business operations.

Comprehend and apply the concept of quick ratio in assessing a company's short-term liquidity.

Calculate and analyze accounts receivable turnover to evaluate a company's effectiveness in managing its credit sales.

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Definitions:

Withholding Tables

Charts provided by the IRS that employers use to determine the amount of federal income tax to withhold from employees' wages.

Form 941

A quarterly federal tax form used by employers to report income taxes, social security tax, or Medicare tax withheld from employee's paychecks.

Reconciliation Report

A financial document used to compare and reconcile discrepancies between two sets of records or accounts to ensure their accuracy.

Biweekly

Refers to an event or action occurring every two weeks.