Answer the Following Questions Using the Information Below

question 112

Multiple Choice

Answer the following questions using the information below:
Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, variable costs are $400, and fixed costs are $90,000.
-How many dresses are sold when operating income is zero?

• A) 225 dresses
• B) 150 dresses
• C) 100 dresses
• D) 90 dresses

Analyze the impact of incorrectly recorded petty cash transactions on financial statements.

Recognize transactions that are appropriate for the petty cash fund and those that are not.

Understand the concept of a Cash Short and Over account and its implications for accounting.

Identify the role of auxiliary petty cash records and vouchers in managing petty cash.

---

Definitions:

Employment

The condition of having paid work, where an individual provides labor or services in exchange for compensation.

Aseptic Hand Washing

A procedure for cleaning hands with the aim of eliminating pathogens to prevent infection.

Faucets

Devices that control the release of water from a plumbing system, commonly found in sinks, baths, and outdoor water supplies.

Forearms

The part of the arm between the elbow and the wrist.