Bowen Corp One-Half of the Rented Premises Is Occupied by the Sales

question 48

Multiple Choice

Bowen Corp.reports operating expenses in two categories: (1) selling and (2) general and administrative.The adjusted trial balance at December 31, 2007 included the following expense and loss accounts: $\begin{array}{lr}\text { Accounting and legal fees } & 140,000 \\\text { Advertising } & 180,000 \\\text { Freight-out } & 80,000 \\\text { Interest } & 70,000 \\\text { Loss on sale of long-term investment } & 30,000 \\\text { Officers' salaries } & 225,000 \\\text { Rent for office space } & 220,000 \\\text { Sales salaries and commissions } & 170,000\end{array}$ One-half of the rented premises is occupied by the sales department.Bowen's total selling expenses for 2007 are

• A)$540,000.
• B)$460,000.
• C)$430,000.
• D)$370,000.

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Definitions:

Dividends Increase

This is when a company decides to increase the amount of money distributed to its shareholders from its earnings.

Annual Dividend

The regular payment made by a corporation to its shareholders, often expressed as a fixed amount per share that is distributed annually.

Downsizing Mode

A corporate strategy involving the reduction of a company's size, typically through layoffs, to reduce costs and improve efficiency.