Denison Manufacturing Company Has the Following Information All Cash Expenses Are Paid as Incurred

question 108

Multiple Choice

Denison Manufacturing Company has the following information: $\begin{array}{lr}\text { Month } & \text { Budgeted Sales } \\\hline \text { January } & \$ 76,000 \\\text { February } & 85,000 \\\text { March } & 92,000 \\\text { April } & 79,000\end{array}$


$\begin{array}{lr}\text { Budgeted } & \text { Expenses per Month } \\\text { Wages } & \$ 15,000 \\\text { Advertising } & 12,000 \\\text { Depreciation } & 3,000 \\\text { Other } & 4 \% \text { of sales }\end{array}$ All cash expenses are paid as incurred._____ is the expected total cash disbursements for expenses in January.

• A)$30,000
• B)$30,040
• C)$33,040
• D)$28,200

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Definitions:

Impairment Loss

The amount by which the carrying amount of an asset exceeds its recoverable amount, leading to a decrease in the asset's value on the balance sheet.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after intercompany transactions have been eliminated, as presented in the consolidated financial statements.

Statement of Comprehensive Income

A financial statement that presents a company's total income and expenses, including items that have not been realized, providing a complete picture of its overall financial performance.

Goodwill Impairment

A charge that occurs when the market value of goodwill, an intangible asset, drops below its recorded value on the balance sheet, indicating diminished business value.