A Rug Manufacturer Has Decided to Use Seven Compatible Colors

question 43

Multiple Choice

A rug manufacturer has decided to use seven compatible colors in her rugs. However,in weaving a rug,only five spindles can be used. In advertising,the rug manufacturer wants to indicate the number of different color groupings for sale. How many color groupings using the seven colors taken five at a time are there? (This assumes that five different colors will go into each rug-in other words,there are no repetitions of color.)

• A)7
• B)21
• C)840
• D)42

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Definitions:

Accumulated Depreciation

The total amount of a company's asset value that has been allocated as depreciation expense since the asset was put into use.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thus preparing the books for the next period.

Income Summary

An account used in the closing process that summarizes revenues and expenses for a period, transferring the net amount to retained earnings.

Sales Returns

Transactions where customers return defective, unsatisfactory or unwanted products back to the seller, resulting in a reversal of revenue.