A Company Has Net Sales of $137,000, Cost of Goods

question 65

Multiple Choice

A company has net sales of $137,000, cost of goods sold of $73,000, operating expenses of $42,000, and other expenses of $1,000. The company's operating income is:

• A)$21,000.
• B)$64,000.
• C)$63,000.
• D)$22,000.

Recognize the role and importance of internal controls over cash.

Identify how banks and companies manage and report cash and cash equivalents.

Differentiate between various types of adjustments in a bank reconciliation.

Understand the impact of Sarbanes-Oxley on the financial reporting and internal controls of companies.

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Definitions:

Product Life Cycle

A model that describes the stages a product goes through from its introduction to the marketplace until its decline and eventual withdrawal. These stages typically include introduction, growth, maturity, and decline.

Promotional Mix

The blend of different marketing strategies (advertising, sales promotion, public relations, personal selling, and direct marketing) used to achieve marketing goals.

Decline

A decrease in the importance, quality, or performance of something, often observed in product life cycles or economic conditions.

Growth Stage

A phase in the lifecycle of a product or business characterized by rapid revenue growth and increasing market acceptance.