Please Refer to the Following Trial Balance

question 1

Multiple Choice

Please refer to the following trial balance. How much are Net sales revenues?

• A)$155,000
• B)$160,000
• C)$27,000
• D)$75,000

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue; a key indicator of financial health.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering fixed costs.

Indirect Expenses

Costs that are not directly tied to a specific product, service, or department and need to be allocated, such as utilities or rent.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.