Barrister Corporation Separates Operating Expenses in Two Categories: (1)selling,and (2)general

question 37

Multiple Choice

Barrister Corporation separates operating expenses in two categories: (1) selling,and (2) general and administrative.The adjusted trial balance at December 31,2014,included the following expenses and loss accounts:

One-half of the rented premises is occupied by the sales department.Barrister's total selling expenses for 2014 are

• A)$720,000.
• B)$740,000.
• C)$800,000.
• D)$960,000.

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Definitions:

Subsidiary Companies

Companies that are controlled by another company, known as the parent company, through ownership of more than half their voting stock or through other means.

Right of Return

A policy that allows customers to return purchased goods within a specified period if they are not satisfied.

Sales Price

The amount for which a commodity is sold to a customer, excluding tax, shipping, and handling.

Cash Planning

The process of forecasting, managing, and monitoring a company's cash inflows and outflows to ensure it has sufficient liquidity to meet its obligations.