The Department Within a Company That Performs the Function of Selling

question 77

Multiple Choice

The department within a company that performs the function of selling goods or services is called _______________.

• A) marketing
• B) sales
• C) finance
• D) operations Management

Determine net income or loss from an adjusted trial balance or list of transactions.

Understand the purpose and components of the end-of-period spreadsheet in the accounting cycle.

Identify the types of accounts and entries that appear in different sections of the end-of-period spreadsheet.

Describe the process for preparing financial statements from the end-of-period spreadsheet.

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Definitions:

Merchandise Creditors

Suppliers or vendors to whom a company owes money for inventory purchased on credit.

Current Liability

A current liability is a company's short-term financial obligation that is due within one year or within the normal operating cycle.

Current Asset

Assets expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of a business, whichever is longer.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used, as opposed to the indirect method which adjusts net income for accruals.