Arya Makes Earrings in the Shape of the Mascot of a Local

question 72

True/False

Arya makes earrings in the shape of the mascot of a local university. Last year, Arya made 250 pairs of earrings, which she sold to the university bookstore for $10 each. Arya works out of her home with material cost of $3 per pair and $85 for tax help. If Arya did not produce earrings, she would spend her time watching television. Based on this information, Arya's implicit cost is zero.

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Definitions:

Office Supplies

Items and materials used in offices for daily work activities, including paper, pens, and office equipment.

Office Equipment

Fixed assets that are used in an office environment for the purpose of performing business operations, including computers, printers, and furniture.

Journal Entry

A record in accounting that represents a transaction in the ledger.

Notes Payable

Written promissory notes in which a borrower agrees to pay back the lender at a later date, often with interest.