Scenario 13-13 Christine Is an Artist Who Creates Custom Cookie Jars. Her

question 394

Multiple Choice

Scenario 13-13
Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000. The annual explicit costs of the materials used to make the cookie jars are $54,000.
-Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. Christine could earn $6,000 per year as a tax preparer. What is the annual accounting profit of her cookie jar business?

• A)$36,000
• B)$35,950
• C)$30,000
• D)$29,950

Recognize the purposes and types of corporate investments, including reasons and exceptions.

Understand the characteristics and classification of strategic investments.

Comprehend the concepts of consolidated financial statements and significant influence.

Differentiate between realized and unrealized gains and losses.

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Definitions:

Decertification

The process of revoking or withdrawing the certification of an individual, organization, or product, often in a legal or professional context.

Public Sector

The portion of an economy that comprises government services and enterprises, including administration, defense, public education, and healthcare.

Private Sector

The part of the economy that is owned and managed by private individuals and companies, rather than by the state, and operates for profit.

Labour Relations

The study and practice of managing the relationship between employers and employees, particularly around issues such as wages, working conditions, and collective bargaining.