Cordelia Corp

question 111

Multiple Choice

Cordelia Corp.acquires land for $120,000 cash.Additional costs are as follows: Cordelia will record the cost of the land as

• A)$120,000.
• B)$124,120.
• C)$124,880.
• D)$140,880.

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Definitions:

Cash Flow Statement

A cash flow statement is a financial document that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Non-cash Expenses

Expenses recorded on a company's income statement that do not involve an actual cash outlay, such as depreciation or amortization.

Sales Returns and Allowances

Deductions from gross sales that reflect products returned by customers and discounts provided for minor defects.

Contra-asset Account

A type of account in the general ledger that reduces the value of a related account when its balance is subtracted from the balance of the related account.