Elston Company Compiled the Following Financial Information as of December

question 74

Multiple Choice

Elston Company compiled the following financial information as of December 31, 2014: $$\begin{array} { l r } \text { Service revenue } & \$ 700,000 \\\text { Common stock } & 150,000 \\\text { Equipment } & 200,000 \\\text { Operating expenses } & 625,000 \\\text { Cash } & 175,000 \\\text { Dividends } & 50,000 \\\text { Supplies } & 25,000 \\\text { Accounts payable } & 100,000 \\\text { Accounts receivable } & 75,000 \\\text { Retained earnings, } 1 / 1 / 14375,000\end{array}$$ Elston's assets on December 31, 2014 are

• A) $1,175,000.
• B) $850,000.
• C) $400,000.
• D) $475,000.

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Definitions:

Field Sales Call

A direct visit made by sales representatives to potential or existing customers in their locations to promote and sell products or services.

Salespeople's Compensation

The payment plan designed for sales personnel, often including a combination of salary, commission, and other incentives based on performance.

Business Customer

An entity, typically a company or organization, that purchases goods or services for use in the production of other goods and services, rather than for personal use.

Missionary Salespeople

Sales representatives who promote their company's products indirectly, often by educating and building relationships with intermediaries rather than selling directly to end users.