Cathy Is Both a Debtor and a Creditor of Palm

question 51

Multiple Choice

Cathy is both a debtor and a creditor of Palm Ltd. At the end of the period Cathy owes Palm Ltd $500 while Palm Ltd owes Cathy $2000. After offsetting the amounts, Palm Ltd's books show a balance of how much as still owing to or from Cathy?

• A) Cathy (creditor) is owed $1500
• B) Cathy (debtor) owes $1500
• C) Cathy (creditor) is owed $2500
• D) Cathy (debtor) owes $2500

Distinguish between cash and cash equivalents.

Apply the principles of internal control to cash transactions to prevent and detect errors and fraud.

Calculate and analyze the days’ sales uncollected ratio to assess the efficiency of a company's receivables management.

Understand the purpose of a voucher system in accounts payable and the steps involved in invoice approval.

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Definitions:

Psychodynamic

A psychological theory or approach that emphasizes the interplay of unconscious psychological processes in shaping feelings, thoughts, and behaviors.

Collectivist

Pertaining to cultures or societies that prioritize the group over individual interests, emphasizing community, cooperation, and interdependence.

Projection

A defense mechanism in which unwanted feelings are displaced onto another person, where they then appear as a threat from the external world.

Sublimation

Sublimation is a defense mechanism proposed by Freud in which socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior, possibly resulting in a long-term conversion of the initial impulse.