Partial Income Statements of Company a and Company B Are

question 84

Multiple Choice

Partial income statements of Company A and Company B are provided below: Company A
$$\begin{array} { | l | r | r | } \hline \text { Revenue } & & \$ 80,000 \\\hline \text { Expenses: } & & \\\hline \text { Utilities Expense } & \$ 5,000 & \\\hline \text { Salaries Expense } & 15,000 & \\\hline \text { Rent Expense } & \underline { 3,700 } & \\\hline \text { Total Expenses } & & \underline { 23,700 } \\\hline \text { Operating Income } & & \$ 56,300 \\\hline\end{array}$$ Company B
$$\begin{array} { | l | r | r | } \hline \text { Revenue } & & \$ 50,000 \\\hline \text { Cost of Goods Sold: } & & \\\hline \text { Beginning Merchandise Inventory } & \$ 4,000 & \\\hline \text { Purchases and Freight In } & \underline { 23,000 } & \\\hline \text { Cost of Goods Available for Sale } & 27,000 & \\\hline \text { Ending Merchandise Inventory } & \underline { ( 5,500 } & \\\hline \text { Cost of Goods Sold } & & 21,500 \\\hline \text { Gross Profit } & & \$ 28,500 \\\hline\end{array}$$ Which of the following statements is true?

• A) Company A is a merchandising company.
• B) Company B is a manufacturing company.
• C) Company A is a manufacturing company.
• D) Company A is a service company.

---

Definitions:

Macro Levels

Macro levels refer to the large-scale structures and processes in society, including cultural norms, economic systems, and political organizations, affecting groups and entire societies.

Resiliency

Resiliency is the capacity to recover quickly from difficulties; it's the mental or emotional strength to cope with crisis and bounce back from adversity.

Risk Factors

Risk factors are characteristics, conditions, or behaviors that increase the likelihood of a negative outcome or event, such as disease or injury.

Vulnerability Factors

Conditions or attributes in individuals or groups that increase the likelihood of experiencing harm or adverse conditions.