Income from Operations for Division X Is $280,000,total Service Department

question 14

Multiple Choice

Income from operations for Division X is $280,000,total service department charges are $570,000,and operating expenses are $2,530,000.What are the revenues for Division X?

• A)$2,810,000
• B)$2,240,000
• C)$2,530,000
• D)$3,380,000

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Definitions:

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity situation by comparing its most liquid assets, excluding inventory, to its current liabilities.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, including cash, inventory, and receivables.

Inventory

The total amount of goods and materials held in stock by a business or organization.

Marketable Securities

Financial instruments that can be easily bought or sold on public exchanges or markets with high liquidity and short maturity periods.