Consider the Following Information Taken from the Cash Account How Much Was the Beginning Balance of the Cash Account

question 98

Multiple Choice

Consider the following information taken from the cash account.Assume cash payments were 80% of collections.
$\begin{array}{|c|l|}\hline \text { Cash } & \\\hline ? ? & \text { Beg. balance } \\\hline \$ 115,375 & \text { Collections } \\\hline ? ? & \text { Disbursements } \\\hline \$ 80,275 & \text { End balance } \\\hline\end{array}$
How much was the beginning balance of the cash account?

• A)$57,200
• B)$92,300
• C)$103,350
• D)$35,100

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Definitions:

Nonperformance

The failure to act or fulfill one’s duties or obligations as agreed or required.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform under a contract, often found in legal agreements.

Compensatory Damages

Compensatory damages are monetary awards granted in civil litigation to reimburse plaintiffs for actual losses or damages they have incurred.

Consequential Damages

Losses or damages that do not directly arise from a breach of contract but are a result of the breach.