A Company's Cash Flows Are $3,600

question 11

Multiple Choice

A company's cash flows are $3,600. Based on economic conditions during the year, the company booked allowances of $1,500. As a result of contractual incentives, the company booked a further $700 in accruals. What is the total reported earnings of the company?

• A)$1,400
• B)$2,200
• C)$3,600
• D)$5,800

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Definitions:

Business

An organizational entity that provides goods or services to consumers in exchange for monetary compensation.

Innovation

The introduction of new ideas, products, services, or processes, driving progress and offering competitive advantages in the business world.

Business Growth

The process of increasing the size, output, or market reach of a business, typically measured through sales, profits, or market share.

Self-Employment

A state of working for oneself rather than being employed by an employer, often leading to the operation of one's own business.