Smith Technical Services Is Working on a Six-Month Job for a Client,starting

question 3

Multiple Choice

Smith Technical Services is working on a six-month job for a client,starting February 1.They will collect $48,000 from their customer when the job is finished.On March 1,their Accounts receivable account has a debit balance of $8,000.At the end of March,after monthly adjusting entries have been made,what will the balance in Accounts receivable be?

• A) Debit balance of $48,000
• B) Credit balance of $8,000
• C) Debit balance of $16,000
• D) Debit balance of $12,000

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Definitions:

Expected Return

Expected return is the anticipated amount of profit or loss an investment is predicted to generate, accounting for the probability of different outcomes.

Financial Plan

Document that specifies the funds needed by a company for a period of time, the timing of inflows and outflows, and the most appropriate sources and uses of funds.

Inflows

The movement of resources, such as money or goods, into a system, organization, or area.

Outflows

The movement of money out of a business or financial account, typically relating to expenses or investments.