Find the Entry You Would Make on an Income Statement

question 64

Multiple Choice

Find the entry you would make on an income statement for TOTAL OPERATING EXPENSES for the year ended December 31, 2011: Gross Sales, $141,000; Sales Returns and Allowances, $7,600; Sales Discounts, $9,600; Merchandise Inventory, January 1, 2011, $50,300; Merchandise Inventory, December 31, 2011, $42,400; Net Purchases, $62,100; Freight In, $1,000; Salaries, $80,500; Rent, $18,900; Utilities, $1,225; Insurance, $2,250; and Income Tax, $17,400.

• A) $71,000
• B) $102,875
• C) $120,275
• D) $123,800

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Definitions:

Price of Movie Tickets

The amount of money charged for admission to a movie screening.

Substitute

An alternative product or service that consumers can turn to if the original product or service becomes unavailable or too expensive.

Ambiguous Effect

An ambiguous effect refers to an outcome or result that is unclear or can have multiple interpretations, often leading to uncertain impacts in economic analyses.

Substitute

An alternative product or service that can replace another in satisfying consumer needs or wants.