As James Bought His Textbooks for Classes One Semester, He

question 221

Multiple Choice

As James bought his textbooks for classes one semester, he estimated the cost to the nearest ten dollars. He knew he could cover the cost up to $315. His math book cost $68.41,
Biology text was $105.35, literature text cost $72.49, and the AutoCAD text was $59.91.
What rounded sum did James determine? Could he buy all his books at this time?

• A)$310; yes
• B)$306.16; yes
• C)$320; no
• D)$305; yes

Understand the difference between accrual-basis and cash-basis accounting and why GAAP prefers accrual-basis.

Comprehend the purpose of adjusting entries and their role in the accounting cycle.

Identify the various types of adjusting entries and their impact on financial statements.

Recognize the principles of revenue recognition and the matching principle as foundations of accrual accounting.

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Definitions:

Efficiency

The optimal production and distribution of resources in a way that maximizes the net benefit to society or an economy.

Total Surplus

A measure of society's overall net advantage resulting from the consumption and production of a good or service, comprised of both consumer and producer surplus.

Fire Marshal

An official responsible for enforcing fire safety codes and regulations, as well as investigating fires to determine their cause.

Total Surplus

In economics, the total net gain to society from trading in a market, equal to the sum of consumer and producer surplus.