A Consulting Firm Provided Services Last Month and Billed Its

question 37

Multiple Choice

A consulting firm provided services last month and billed its client. This month, the company received payment from the customer. What impact does this month's transaction have on the firm's working capital?

• A)increase
• B)decrease
• C)no net effect
• D)Unable to determine with this limited information.

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Definitions:

Bribe

Offering, giving, receiving, or soliciting something of value for the purpose of influencing the actions of an official or other person in charge of a public or legal duty.

Best Interests

A standard considering the wellbeing and benefits of an individual, especially in legal and financial decisions affecting that person.

Fair Market Value

The price at which property would sell under usual market conditions, reflecting its value when both buyer and seller are reasonably knowledgeable and willing.

Self-dealing

Conduct by a fiduciary or a person in a position of trust that involves taking advantage of their position for personal gain at the expense of those to whom they owe a duty.