Byfort Company Reports the Following in Its Financial Statements *All Sales Are on Credit

question 36

Multiple Choice

Byfort Company reports the following in its financial statements:
$$\begin{array} { | l | c | c | } \hline & \underline { 2005 } & \underline { 2006 } \\\hline \text { Accounts receivable, net } & \$ 34,289 & \$ 29,678 \\\hline \text { Net sales* } & \$ 360,007 & \$ 450,000 \\\hline\end{array}$$
*All sales are on credit.
-How much sales would have been reported by the company in 2006 if Byfort used cash accounting and not accrual accounting?

• A)$445,389
• B)$454,611
• C)$484,289
• D)$488,900

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Definitions:

Public Policy

Government policies aimed at ensuring the public's general welfare and protection.

Wrongful Action

An act or omission that infringes on the rights of others or is contrary to law.

Legal Right

An entitlement or privilege that is protected and enforced by a legal system.

Personal Property

Property that is movable; any property that is not real property; sometimes called personalty or chattel.