Use the Following Information for Questions 56 and 57

question 37

Multiple Choice

Use the following information for questions 56 and 57.
During 2014, which was the first year of operations, Oswald Company had merchandise purchases of $985,000 before cash discounts. All purchases were made on terms of 2/10, n/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end.
-Which of the following recording procedures would result in the highest net income for 2014?1. Recording purchases at gross amounts2. Recording purchases at net amounts, with the amount of discounts not taken shown under "other expenses" in the income statement

• A) 1
• B) 2
• C) Either 1 or 2 will result in the same net income.
• D) Cannot be determined from the information provided.

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Definitions:

Supportive Leadership

A leadership style that emphasizes support, encouragement, and empowerment of employees to achieve organizational goals.

Achievement-oriented Leadership

A leadership style focused on setting challenging goals, emphasizing excellence, and showing confidence in followers' abilities to meet high standards.

Directive Leadership

A leadership style where the leader gives explicit guidelines and directions on what is to be done and how.

Participative Leadership

A leadership style that invites input and collaboration from team members in decision-making processes.