Refer to the Following Trial Balance How Much Is the Gross Profit?
A) $155,000
B) $80,000

question 68

Multiple Choice

Refer to the following trial balance. $$\begin{array} { | l | r | r | } \hline & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 5,000 & \\\hline \text { Accounts receivable } & 14,000 & \\\hline \text { Inventory } & 20,000 & \\\hline \text { Supplies } & 5,000 & \\\hline \text { Land } & 100,000 & \\\hline \text { Accounts payable } & & \$ 3,000 \\\hline \text { Notes payable } & & 25,000 \\\hline \text { Smith, Capital } & & 90,000 \\\hline \text { Smith, Withdrawals } & 1,000 & \\\hline \text { Sales revenues } & & 160,000 \\\hline \text { Sales returns and allowances } & 2,000 & \\\hline \text { Sales discounts } & 3,000 & \\\hline \text { Cost of goods sold } & 80,000 & \\\hline \text { Salaries expense } & 5,000 & \\\hline \text { Utility expense } & 23,000 \\\hline \text { Rent expense } & 18,000 & \\\hline \text { Interest expense } & 2,000 \\\hline \text { Totals } & \$ 278,000&\$278,000 \\\hline\end{array}$$ How much is the gross profit?

• A) $155,000
• B) $80,000
• C) $230,000
• D) $75,000

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Definitions:

Minimize

To reduce something to the least possible amount or degree.

Dissonance

A state of conflict or inconsistency between a person's beliefs, attitudes, or actions, often leading to discomfort and change.

Cognitive Dissonance

A psychological phenomenon in which an individual experiences discomfort or distress from holding two or more contradictory beliefs, ideas, or values at the same time.

Opinions

Personal views, beliefs, or judgments that may not be based on fact or knowledge.