Leno Distributing, Which Began Operating on January 1, Appropriately Uses

question 11

Multiple Choice

Leno Distributing, which began operating on January 1, appropriately uses the installment method of accounting. The following information pertains to Leno's operations for the first year:

The balance in the deferred gross profit account at December 31 should be

• A) $400,000.
• B) $320,000.
• C) $240,000.
• D) $200,000.

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Definitions:

Rule Utilitarian

A form of utilitarianism that evaluates the moral correctness of an action based on rules that, if universally followed, would lead to the greatest good for the greatest number.

General Practice

A medical practice involving a broad spectrum of healthcare rather than specializing in one particular field.

Distributive Justice

the ethical principle concerned with the fair allocation of resources and wealth among members of a society.

Social Egalitarianism

A philosophy advocating for equal rights and opportunities for all people within society.