Division T Reported Income from Operations of $900,000 and Total

question 122

Multiple Choice

Division T reported income from operations of $900,000 and total service department charges of $575,000.Therefore:

• A)net income was $325,000.
• B)the gross profit margin was $325,000.
• C)income from operations before service department charges was $1,475,000.
• D)consolidated net income was $325,000.

Comprehend the structure and components of the four basic financial statements.

Recognize the role of technology in modern accounting practices.

Identify the principles underlying the return on assets and its significance in assessing company performance.

Understand the classification of cash flows and the nature of investing, financing, and operating activities.

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Definitions:

Supplies

Consumable items or materials used in the daily operations of a business or for the completion of a task.

Withdrawal

The act of removing funds from an account or the act of taking out resources or assets from business use by the owners.

Business Transaction

An economic event that affects the financial position of a company and is recorded in its accounting system.

Accounting Equation

A fundamental principle in accounting that represents the relationship between a company's assets, liabilities, and equity (Assets = Liabilities + Equity).