Lexie, a Sales Representative for GreenWares Company, Failed to Achieve

question 84

Multiple Choice

Lexie, a sales representative for GreenWares Company, failed to achieve her sales quota last year but was praised by her manager for reducing her expense account by 25 percent. Lexie was

• A) effective but not efficient.
• B) somewhat effective and very inefficient.
• C) both effective and efficient.
• D) not effective but efficient.
• E) not effective and not efficient.

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Definitions:

Future Cash Flows

Estimates of the amounts of cash that a company expects to receive or pay out in the future, important for budgeting, forecasting, and valuation.

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable interest rate until the principal amount is repaid.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.

Interest Expense

The expense recorded by a business for the funds it has borrowed, categorized as a non-operating expense in the income statement.