The Following Data Relate to Gorr Company for the Year

question 5

Multiple Choice

The following data relate to Gorr Company for the year ended December 31,2012.Gorr Company uses the accrual basis. $\begin{array}{llcc} \text {Sales for cash } &\$200,000 \\ \text {Sales for credit } &220,000\\ \text { Cost of inventory sold } &180,000\\ \text { Collections from customers } &300,000\\ \text { Purchases of inventory on credit} &190,000\\ \text { Payment for purchases} &180,000\\ \text {Selling expenses (accual basis) } &50,000\\ \text { Payment for selling expenses } &60,000\end{array}$
Which of the following represents income for Gorr Company for the year ended December 31,2010?

• A)$180,000
• B)$185,000
• C)$190,000
• D)$200,000
• E)None of the answers are correct.

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Definitions:

Intangibles

Non-physical assets that cannot be easily quantified but have value, such as intellectual property, goodwill, and brand reputation.

Customer Goodwill

Refers to the favorable reputation a business gains due to positive customer experiences and is seen as an intangible asset.

Outsourcing

The practice of having certain job functions or tasks performed by external entities or individuals, typically to reduce costs or improve efficiency.

Complexity

Refers to the state of having multiple interconnected parts, making a system or problem challenging to understand, predict, or control.