Milton Toy Co

question 19

Multiple Choice

Milton Toy Co. recorded sales of $2,500 and costs of $1,875. Net accounts receivable rose by $350 and net accounts payable declined by $240. What were cash sales minus cash costs?

• A) $625
• B) $35
• C) ($110)
• D) $90

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Definitions:

Common Stock

Represents ownership interests in a corporation, giving holders voting rights and a share in the company's profitability through dividends.

Journalize

The process of recording financial transactions in a company's journal, detailing debits and credits for accounting purposes.

Common Stockholders' Equity

The portion of a company's equity that is attributable to common stock owners, calculated as total equity minus preferred stock equity.

Prior Period Adjustments

Corrections made to a company's financial statements for errors or omissions in previously reported periods.