A Firm Has Just Ended the Calendar Year Making a Sale

question 112

Multiple Choice

A firm has just ended the calendar year making a sale in the amount of $200,000 of merchandise purchased during the year at a total cost of $150,500. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. One possible problem this firm may face is ________.

• A) low profitability
• B) insolvency
• C) inability to receive credit
• D) high leverage

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Definitions:

Utero

Utero refers to anything related to the uterus or occurring within the uterus, often used in medical or biological contexts concerning pregnancy or fetal development.

Infected

pertains to the state of being invaded by pathogenic microorganisms such as viruses, bacteria, or fungi, which may cause disease or discomfort.

Antibiotic

Medicinal compounds used to kill or inhibit the growth of bacteria, used in the treatment and prevention of bacterial infections.

Fetal Alcohol Syndrome

A condition resulting from alcohol exposure during pregnancy, causing growth problems, facial anomalies, and brain damage in the child.