Using the Reciprocal Services Method, Which of the Following Equations

question 81

Multiple Choice

Using the reciprocal services method, which of the following equations represents the algebraic expression for the total costs of a Janitorial Department (J) that includes not only $350,000 of direct costs but also 30% of the Maintenance Departments (M) cost?

• A)J = $350,000 + (0.30 ÷ M)
• B)J = ($350,000 × 0.30) + M
• C)J = $350,000 - (0.30 × M)
• D)J = $350,000 + (0.30 × M)

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Definitions:

Accounts Receivable Turnover

Accounts receivable turnover is a financial ratio that measures how many times a company can turn its accounts receivable into cash during a period.

Adjusting Entry

An accounting process used to allocate expenses and revenues between periods according to their occurrence and realization, ensuring that financial statements accurately reflect the financial position of a company at the end of an accounting period.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Interest Note

A promissory note that includes terms for interest payments in addition to the principal amount loaned.