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

question 141

Multiple Choice

Smith Technical Services is working on a six-month job for a client, starting February 1. They will collect $30,000 from their customer when the job is finished. On March 1, their Accounts Receivable account had a debit balance of $5,000. At the end of March, after monthly adjusting entries have been made, what will be the balance in Accounts Receivable?

• A)Debit balance of $5,000
• B)Credit balance of $25,000
• C)Debit balance of $10,000
• D)Debit balance of $30,000

Understand the concept of marginal analysis and how it applies to decision-making processes.

Recognize the characteristics and implications of risk aversion in economic decisions.

Identify and explain the use of bounded rationality in decision-making.

Grasp the principles of behavioral economics and its relevance to irrational decision-making.

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Definitions:

Feedback Mechanisms

Biological processes that regulate bodily functions and maintain homeostasis through a system of inputs and outputs responding to changes in the environment or internal conditions.

Instinct Approaches

Theories or perspectives that suggest behaviors are innate and driven by evolutionary programmed instincts.

Evolutionary Psychology

A theoretical approach in psychology that examines psychological structures from a modern evolutionary perspective, aiming to identify which human psychological traits are evolved adaptations.

Mainstream Psychology

The dominant approaches and theories within the field of psychology that are widely accepted and taught across the majority of academic and clinical settings.