Ferrero Company Reported the Following Information on for the Current

question 77

Multiple Choice

Ferrero Company reported the following information on for the current year: $\begin{array}{|l|l|l|l|}\hline \text { Account } & \text { Current year } & \text { Percentage } & \text { Prior year } \\\hline \text { Net sales revenue } & \$ 360,000 & 100 \% & \$ 300,000 \\\hline \text { COGS } & \$ 223,200 & ? & \$ 240,000 \\\hline \text { Gross Profit } & \$ 136,800 & 38.00 \% & \$ 60,000 \\\hline \text { Selling/General Exp. } & \$ 64,800 & 18.00 \% & \$ 12,000 \\\hline \text { Net income before tax } & \$ 72,000 & ? & \$ 48,000 \\\hline \text { Income Tax } & \$ 3,600 & 1.00 \% & \$ 3,000 \\\hline \text { Net Income } & \$ 68,400 & ? & \$ 45,000 \\\hline\end{array}$

-What would a vertical analysis report with respect to current year selling and general expenses?

• A)An increase of $52,8000
• B)A decrease of .81.46%
• C)18% of net sales revenue
• D)440.00% of net sales revenue

Recognize the operational features and benefits of computerized practice management software.

Knowledge about financial transaction recording systems used historically in medical practices.

Comprehend the roles and responsibilities of financial positions within a medical office.

Differentiate between various types of financial entries (e.g., debits, credits) and their implications.

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Definitions:

Legitimate Power

Authority that is officially granted to a leader or manager by an organization, recognized as rightful by those who are governed by it.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Order

The arrangement or organization of people, tasks, or things following a particular sequence, pattern, or method.

Coercive Power

This refers to the ability of a person to force others to comply with orders or requests through threats, punishment, or negative consequences.