If the Actual A/R at the End of February Was

question 18

Multiple Choice

If the actual A/R at the end of February was $12,000 and projected sales in March are $50,000, where 70% of sales are on credit, 60% of credit sales are collected in the month of the sale, and 40% are collected in the month after the sale, what amount of cash is collected during March?

• A) $36,000
• B) $14,000
• C) $48,000
• D) $35,000

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Definitions:

Second-Level Outcomes

Refers to the indirect or long-term results of an action or decision, beyond the immediate or primary effects.

Expectancy Model

A psychological theory that explains motivation as a function of individuals' expectations about their ability to perform tasks, the expected outcomes of these tasks, and the value they place on these outcomes.

Valence

refers to the intrinsic attractiveness or aversiveness of an event, object, or situation.

Task Identity

The degree to which a job involves completing a whole, identifiable piece of work from start to finish.