In January 2015, Tim's Gyms, Inc

question 10

Multiple Choice

In January 2015, Tim's Gyms, Inc. owned machines valued at $1 million. During the year, the market value of the equipment fell by 30 percent. During 2015, Tim spent $200,000 on new machines. During 2015, Tim's gross investment totaled

• A) $1 million.
• B) $300,000.
• C) $200,000
• D) $900,000.

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Definitions:

Timing Differences

Discrepancies that arise when financial events are recognized in different periods in financial statements, affecting the comparison and analysis of financial data.

Cash Balance

The amount of cash held by a company, reflected in its financial statements, showing the liquidity available for operations and investments.

NSF Check

A check that a bank returns without honoring because the account on which it was drawn does not have sufficient funds.

Bank Reconciliation

The process of matching and comparing a company's financial records with those of its bank statements to ensure consistency and accuracy.