Use the Following Financial Information to Find the Entry You

question 86

Multiple Choice

Use the following financial information to find the entry you would make on an income statement for GROSS MARGIN for the year ended December 31, 2011: Gross Sales, $231,000; Sales Returns and Allowances, $7,700; Sales Discounts, $6,800; Merchandise Inventory, January 1, 2011, $55,200; Merchandise Inventory, December 31, 2011, $61,300; Net Purchases, $81,900; Freight In, $950; Salaries, $87,000; Rent, $20,600; Utilities, $1,500; Insurance, $2,350; and Income Tax, $17,350.

• A) $216,500
• B) $139,750
• C) $128,800
• D) $87,700

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Definitions:

Refutational Argument

An argumentative strategy where a speaker or writer acknowledges and then systematically refutes opposing viewpoints.

Source Attractiveness

The degree to which the source of a message is perceived as appealing, which can affect the recipient's acceptance of the message.

Mere Exposure

A psychological phenomenon where individuals develop a preference for things because they are familiar with them.

Advertising Wearout

The phenomenon where repeated exposure to an advertisement leads to boredom and a reduced effectiveness of the advertisement.