The Amount of the Total Cash Paid to the Seller

question 75

Multiple Choice

The amount of the total cash paid to the seller for merchandise purchased would normally include:

• A) only the list price.
• B) only the sales tax.
• C) the list price plus the sales tax.
• D) the list price less the sales tax.

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Definitions:

Owner Drawings

Owner Drawings are withdrawals of business assets by the owner(s) for personal use, affecting the owner's equity account but not considered business expenses.

Revenues

The total amount of money received or expected to be received from the sale of goods or services, as well as other financial sources.

Net Income

The company's ultimate income after expenses and taxes have been taken away from total earnings.

Electronic Repair Revenues

Income generated from the business of fixing and restoring electronic devices and components to working condition.