An Income Statement for Sam's Bookstore for the First Quarter

question 101

Multiple Choice

An income statement for Sam's Bookstore for the first quarter of the year is presented below:
On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed.
-The net operating income using the contribution approach for the first quarter is:

• A) $270,000
• B) $180,000
• C) $144,000
• D) $66,000

Understand the concepts and practices related to recognizing revenue from prepaid subscriptions.

Grasp the principles behind the preparation of an unadjusted trial balance.

Comprehend the importance and process of making adjusting entries in accounting.

Learn how to determine the adjusting entries for prepaid expenses and unearned revenues.

---

Definitions:

Conflict

A struggle or clash between opposing forces, interests, or ideas, which can occur at individual, group, or societal levels.

Differential Association

A theory in sociology suggesting that individuals learn criminal behavior from their environment and personal associations.

Edwin Sutherland

An American sociologist known for pioneering the theory of differential association, which suggests that criminal behavior is learned through social interactions.

Socialization

The process by which people learn their culture. They do so by entering and disengaging from a succession of roles and becoming aware of themselves as they interact with others.