The Mildmanner Corporation Has the Following Data for 2014

question 126

Multiple Choice

The Mildmanner Corporation has the following data for 2014: The margin of safety in units will be (round to the nearest whole unit)

• A) 667.
• B) 2,500.
• C) 4,000.
• D) 7,500.

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Definitions:

Bank Reconciliation

The process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement.

Cash Account

An account that tracks the amount of cash on hand, including currency, checks, and balances in bank accounts.

Accounts Receivable

Debts owed by clients to a firm for goods or services provided but not yet compensated for.

Sales Revenue

The overall amount of money a business earns through the sale of products or services, prior to deducting any costs.