In Company XYZ, Assume That Level Production Happens Throughout the Year

question 52

Multiple Choice

In company XYZ, assume that level production happens throughout the year and that receivables are collected in two equal installments over a two-month period subsequent to the sales period. If XYZ wants to develop a cash budget, which of the following steps is required?

• A) Calculate ending accounts receivable balances.
• B) Calculate cost of goods sold.
• C) Estimate monthly net cash flow and bank borrowing or repayments.
• D) Calculate ending inventory.

Recognize the importance of maintaining a professional demeanor when responding to complaints.

Understand the ethical considerations in excluding or including information in recommendations.

Discover methods to express appreciation or compliments effectively in business communication.

Understand different business communication forms, including letters of recommendation, condolence messages, and social media releases.

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Definitions:

Current Liability

Financial obligations a company owes and is expected to pay within a year.

Long-term Liability

A debt or obligation not due within the current accounting year, requiring repayment over a longer period.

Warranty Repairs

Services provided to repair or fix products free of charge under a warranty agreement, considered a contingent liability when the product is sold.

Parts Inventory

The stock of components or parts kept on hand by a company to assemble products or perform service maintenance.