During January 2018,the First Month of Operations,a Consulting Firm Had

question 207

Multiple Choice

During January 2018,the first month of operations,a consulting firm had following transactions: 1.Issued common stock to owners in exchange for $20,000 cash.
2.Purchased $5,000 of equipment,paying $1,000 cash and signing a promissory note for $4,000.
3.Received $9,000 in cash for consulting services performed in January.
4.Purchased $1,500 of supplies on account;all of the supplies were used in January.
5.Provided consulting services on account in the amount of $16,000.
6.Paid $750 on account.
7.Paid $3,000 to employees for work performed during January.
8.Received a bill for utilities for January of $3,400;the bill remains unpaid.
What is the total expenses that will be reported on the income statement for the month ended January 31?

• A)$3,750.
• B)$7,900.
• C)$8,150.
• D)$4,500.

Understand the purposes and distinctions between various legal actions such as prohibition, mandamus, and judicial review.

Recognize the significance and application of prerogative writs in the context of legal fairness.

Differentiate between mediation, arbitration, negotiation, and court action as dispute resolution mechanisms.

Understand the requirements and implications of successful negotiation and arbitration.

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Definitions:

Purchase Price

The cost at which something is bought, which may include additional fees or taxes involved in the transaction.

Material Cost

The expense incurred in acquiring the raw materials needed to produce a good or deliver a service.

Holding Cost

Holding cost is the expense associated with storing unsold goods or items held in inventory over a certain period, including warehousing, insurance, and depreciation costs.

Economies of Scale

The cost advantage achieved by an increase in production volume that leads to a reduction in per-unit costs.