Black Horse Transportation’s sales budget for the first quarter follows: January
ID: 2568474 • Letter: B
Question
Black Horse Transportation’s sales budget for the first quarter follows:
January
$125,000
February
300,000
March
290,000
All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale. There are no uncollectable accounts.
The Accounts Receivable balance that would appear on the Balance Sheet for March is:
A.
$205,000
B.
$150,500
C.
$142,500
D.
$105,000
Which term describes difference between the actual price of inputs and the standard price of inputs?
A.
Standard cost variance
B.
Price variance
C.
Materials price index
D.
Inflation index adjustment
Which of the following is not part of risk management?
A.
Predict the probability and impact of each risk
B.
Select a response to each risk.
C.
Identify possible risks and their implications
D.
Eliminate all risks that have been identified
January
$125,000
February
300,000
March
290,000
Explanation / Answer
1 Accounts Receivable at the end of March =(300000*20%)+(290000*50%)= 205000 Option A is correct 2 Difference between the actual price of inputs and the standard price of inputs is called Price variance 3 Select a response to each risk is not part of risk management
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