Hong Kong Clothiers Reported Revenue of $5,000,000 for Its Year

question 23

Multiple Choice

Hong Kong Clothiers reported revenue of $5,000,000 for its year ended December 31,2016.Accounts receivable at December 31,2015 and 2016,were $320,000 and $355,000,respectively.Using the direct method for reporting cash flows from operating activities,Hong Kong Clothiers would report cash collected from customers of:

• A)$4,965,000.
• B)$5,000,000.
• C)$5,035,000.
• D)$5,045,000.

Determine the effects of transactions on liquidity ratios such as the current ratio and the acid-test (quick) ratio.

Analyze how actions affect financial metrics, specifically ratios regarding profitability, liquidity, and solvency.

Grasp the relationship between market valuations like the price-earnings ratio and underlying financial performance metrics.

Identify the impact of operational decisions on financial statements, including the effects on turnover ratios and working capital.

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Definitions:

Reinforcement Theory

A theory that posits behavior is motivated by its consequences, with reinforcement used to either increase desired behaviors or decrease unwanted ones.

Reinforcement and Reward

Strategies for strengthening or increasing a desired behavior by providing positive outcomes or incentives following that behavior.

Desirable Behavior

Actions or conduct encouraged within a group or society because it is considered beneficial or socially valued.

Frequency

The rate at which a wave-like pattern or phenomenon, like sound or electromagnetic radiation, occurs within a specific time period.