The Task Company Is to Begin Operations in April

question 69

Multiple Choice

The Task Company is to begin operations in April.It has budgeted April sales of $30,000,May sales of $34,000,June sales of $40,000,July sales of $42,000,and August sales of $38,000.Note that 10% of each month's sales will represent cash sales;75% of the balance will be collected in the month following the sale,17% the second month,6% the third month,and the balance is bad debts.What is the amount of cash to be collected in the month of July?

• A)$34,022.
• B)$38,022.
• C)$42,000.
• D)$37,580.

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Definitions:

Expense Accounts

Budget allocations specifically set aside for covering business-related expenses, such as travel, supplies, and entertainment.

Absenteeism

The regular absence from work or duties without good reason.

Coffee Breaks

are short breaks during work hours allowing employees to rest and refresh, often with coffee or tea.

Reinforcement Theory

A psychological theory suggesting that behavior can be shaped by controlling the consequences of that behavior, emphasizing the use of reinforcement, punishment, or extinction to influence workplace behavior.