A Printing Company Prints a Brochure for a Client and Then

question 8

Multiple Choice

A printing company prints a brochure for a client and then bills them for this service. At the time the printing company's financial disclosure statements are prepared, the client has not yet paid the bill for this service. How will this transaction be recorded?

• A) The sale will be added to Net Income on the income statement and retained in Net Income on the statement of cash flows.
• B) The sale will be added to Net Income on the income statement but deducted from Net Income on the statement of cash flows.
• C) The sale will not be added to Net Income on the income statement but added to Net Income on the statement of cash flows.
• D) The sale will neither be added to Net Income on the income statement nor used to adjust Net Income on the statement of cash flows.

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Definitions:

Subordinate Satisfaction

The level of contentment and positive feelings employees have towards their work, responsibilities, and the leadership they are under.

Short-Term Planning

The process of setting goals and outlining actions for the near future, typically ranging from a few months to a year.

Work Activities

Tasks or sets of tasks that are carried out as part of one's job role or occupation.

Planning Activities

The process of organizing tasks, setting goals, and determining the actions required to achieve those goals.