Use the Following Financial Information to Find the Entry You

question 100

Multiple Choice

Use the following financial information to find the entry you would make on an income statement for COST OF GOODS SOLD for the year ended December 31, 2011: Gross Sales, $180,000; Sales Returns and Allowances, $9,000; Sales Discounts, $6,300; Merchandise Inventory, January 1, 2011, $60,900; Merchandise Inventory, December 31, 2011, $66,700; Net Purchases, $58,300; Freight In, $600; Salaries, $84,700; Rent, $22,000; Utilities, $1,125; Insurance, $2,025; and Income Tax, $17,750.

• A) $45,985
• B) $30,800
• C) $53,100
• D) $65,754

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Definitions:

Gross Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time, before any deductions are made.

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A measure of the strength of the linear relationship between two variables in a population.

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A live musical performance by the iconic rock band Grateful Dead, known for its devoted fan base and unique folk-rock style.

Age

A measure of the time an individual or object has existed, typically expressed in years.