ABC Corporation Began Operations on January 1^st of This Year

question 37

Multiple Choice

ABC Corporation began operations on January 1^st of this year with a cash balance of $250,000.ABC had sales of $200,000 for the month of January,all on credit.ABC allows its customers 30 days to pay.ABC's expenses for January equal $150,000,and ABC's ending balance in accounts payable at January 31^st is $50,000.In its cash budget for January,ABC's ending cash balance should be equal to

• A)$300,000 because of GAAP accrual accounting rules.
• B)$150,000.
• C)$200,000.
• D)$100,000.

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Definitions:

Central Authority

The governing body or group at the highest level of organizational hierarchy, responsible for making major decisions.

Functional

Pertains to the practical or essential aspects of something, often referring to specific roles in a business or organization.

Organizational Structure

The system that outlines how certain activities are directed to achieve the goals of an organization, defining roles, responsibilities, and relationships.

Tasks They Perform

Relates to the specific duties and responsibilities assigned to an individual or team in a work environment.