A Company Reported the Following

question 190

Multiple Choice

A company reported the following:

-Use the above information to answer the following question.What is the amount of gross profit?

• A) $94,200
• B) $98,700
• C) $105,000
• D) $32,700

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Definitions:

GAAP

A set of widely adhered to accounting norms and standards utilized for financial reporting, known as Generally Accepted Accounting Principles.

Capital Lease

A lease agreement that grants a lessee the rights similar to ownership of the asset, typically for a considerable period of the asset's life.

Operating Lease

A leasing agreement allowing the use of an asset without ownership, typically with shorter terms than a finance lease.

FASB/IASB Exposure Draft

A draft report proposed by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) for public comment on proposed changes to accounting standards.