If the Gross Sales for the Computer Department Are $3,700

question 112

Multiple Choice

If the gross sales for the computer department are $3,700 and the book department gross sales are $6,300,what is the allocation for advertising expense of $750 to these departments,based on gross sales?

• A)Computer department $425; book department $325
• B)Computer department $375; book department $375
• C)Computer department $277.50; book department $472.50
• D)Computer department $462.50; book department $287.50

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Definitions:

Operating Leases

Leases where the lessor retains substantial risks and rewards of ownership of the asset while leasing it to the lessee.

Note Disclosure

Informative notes accompanying financial statements, explaining the basis of preparation and detailing specific accounting policies.

Capital Lease

A long-term lease agreement that is classified as a purchase by the lessee for accounting purposes because it effectively transfers substantially all the risks and rewards of ownership.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.